Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 12, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Trading Symbol | yod | |
Entity Registrant Name | YOU ON DEMAND HOLDINGS, INC. | |
Entity Central Index Key | 837,852 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 40,442,931 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well Known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 2,403,761 | $ 3,768,897 |
Restricted cash | 0 | 2,994,364 |
Accounts receivable, net | 3,094,770 | 1,689,415 |
Licensed content, current | 711,683 | 556,591 |
Prepaid expenses | 512,445 | 362,421 |
Deferred issuance cost | 0 | 551,218 |
Other current assets | 159,482 | 157,594 |
Total current assets | 6,882,141 | 10,080,500 |
Property and equipment, net | 93,589 | 154,434 |
Licensed content, non-current | 17,726,840 | 21,085 |
Intangible assets, net | 2,591,122 | 2,412,591 |
Goodwill | 6,648,911 | 6,648,911 |
Long term investments | 6,118,445 | 450,115 |
Other non-current assets | 2,124,417 | 58,089 |
Total assets | 42,185,465 | 19,825,725 |
Current liabilities: | ||
Accounts payable (including accounts payable of consolidated variable interest entities (“VIEs”) without recourse to the Company of $651,254 and $44,867 as of June 30, 2016 and December 31, 2015, respectively) | 651,254 | 45,788 |
Deferred revenue (including deferred revenue of VIEs without recourse to the Company of $1,232 and $15,080 as of June 30, 2016 and December 31, 2015, respectively) | 1,232 | 15,080 |
Accrued expenses (including accrued expenses of VIEs without recourse to the Company of $390,176 and $280,038 as of June 30, 2016 and December 31, 2015, respectively) | 1,440,228 | 1,196,066 |
Accrued salaries (including accrued salaries of VIEs without recourse to the Company of nil and $10,861 as of June 30, 2016 and December 31, 2015, respectively) | 1,344,883 | 1,058,124 |
Other current liabilities (including other current liabilities of VIEs without recourse to the Company of $361,908 and $298,422 as of June 30, 2016 and December 31, 2015, respectively) | 521,374 | 312,170 |
Accrued license content fees (including accrued license content fees of VIEs without recourse to the Company of $1,518,112 and $933,532 as of June 30, 2016 and December 31, 2015, respectively) | 1,518,112 | 933,532 |
Convertible promissory notes | 3,000,000 | 3,000,000 |
Warrant liabilities | 251,611 | 395,217 |
Deposit payable | 0 | 2,994,364 |
Total current liabilities | 8,728,694 | 9,950,341 |
Deferred income taxes | 312,900 | 330,124 |
Total liabilities | 9,041,594 | 10,280,465 |
Commitments and contingencies | 0 | 0 |
Equity: | ||
Common stock $0.001 par value; 1,500,000,000 shares authorized, 38,170,204 and 24,249,109 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively | 38,170 | 24,249 |
Additional paid-in capital | 125,179,330 | 97,512,542 |
Accumulated deficit | (90,182,400) | (86,457,840) |
Accumulated other comprehensive loss | (632,980) | (414,910) |
Total YOU On Demand shareholder's equity | 34,409,275 | 10,671,296 |
Non-controlling interest | (2,527,399) | (2,388,031) |
Total equity | 31,881,876 | 8,283,265 |
Total liabilities, convertible redeemable preferred stock and equity | 42,185,465 | 19,825,725 |
Series A Preferred Stock [Member] | ||
Convertible redeemable preferred stock: | ||
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of June 30, 2016 and December 31, 2015, respectively | 1,261,995 | 1,261,995 |
Series E Preferred Stock [Member] | ||
Equity: | ||
Series E Preferred Stock - $0.001 par value; 16,500,000 shares authorized, 7,154,997 and 7,254,997 shares issued and outstanding, liquidation preference of $12,521,245 and $12,696,245 as of June 30, 2016 and December 31, 2015, respectively | $ 7,155 | $ 7,255 |
UNAUDITED CONSOLIDATED BALANCE3
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts payable of consolidated variable interest entities (VIEs) without recourse to the Company | $ 651,254 | $ 44,867 |
Deferred revenue of VIEs without recourse to the Company | 1,232 | 15,080 |
Accrued expenses of VIEs without recourse to the Company | 390,176 | 280,038 |
Accrued salaries of VIEs without recourse to the Company | 0 | 10,861 |
Other current liabilities of VIEs without recourse to the Company included in other current liabilities | 361,908 | 298,422 |
Accrued license fees of VIEs without recourse to the Company | $ 1,518,112 | $ 933,532 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 38,170,204 | 38,170,204 |
Common stock, shares outstanding | 24,249,109 | 24,249,109 |
Series A Preferred Stock [Member] | ||
Convertible redeemable preferred stock, issued (in shares) | 7,000,000 | 7,000,000 |
Convertible redeemable preferred stock, outstanding (in shares) | 7,000,000 | 7,000,000 |
Convertible redeemable preferred stock, liquidation preference | $ 3,500,000 | $ 3,500,000 |
Series E Preferred Stock [Member] | ||
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 16,500,000 | 16,500,000 |
Preferred Stock, Shares Issued | 7,154,997 | 7,154,997 |
Preferred Stock, Shares Outstanding | 7,254,997 | 7,254,997 |
Preferred Stock, Liquidation Preference, Value | $ 12,521,245 | $ 12,696,245 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | $ 1,480,464 | $ 1,479,648 | $ 2,750,190 | $ 2,507,576 |
Cost of revenue | 800,399 | 829,039 | 1,716,179 | 1,872,038 |
Gross profit | 680,065 | 650,609 | 1,034,011 | 635,538 |
Operating expenses: | ||||
Selling, general and administrative expense | 1,808,906 | 1,658,814 | 3,973,959 | 4,107,116 |
Professional fees | 270,491 | 151,363 | 637,937 | 440,081 |
Depreciation and amortization | 123,343 | 95,082 | 220,806 | 184,825 |
Total operating expense | 2,202,740 | 1,905,259 | 4,832,702 | 4,732,022 |
Loss from operations | (1,522,675) | (1,254,650) | (3,798,691) | (4,096,484) |
Interest and other income/(expense) | ||||
Interest expense, net | (166,710) | (30,232) | (200,183) | (58,555) |
Change in fair value of warrant liabilities | 106,583 | 49,344 | 143,606 | 34,049 |
Equity in losses of equity method investees | (27,001) | (60,621) | (37,349) | (93,024) |
Other | (5,258) | (36,576) | (5,096) | (46,343) |
Loss before income taxes and non-controlling interest | (1,615,061) | (1,332,735) | (3,897,713) | (4,260,357) |
Income tax benefit | 8,612 | 8,612 | 17,224 | 17,224 |
Net loss | (1,606,449) | (1,324,123) | (3,880,489) | (4,243,133) |
Net loss attributable to non-controlling interest | 18,360 | 7,303 | 155,929 | 127,524 |
Net loss attributable to YOU On Demand shareholders | $ (1,588,089) | $ (1,316,820) | $ (3,724,560) | $ (4,115,609) |
Basic and diluted loss per share | $ (0.05) | $ (0.06) | $ (0.14) | $ (0.17) |
Weighted average shares outstanding: | ||||
Basic and diluted | 29,197,899 | 23,851,602 | 26,815,888 | 23,833,760 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net loss | $ (1,606,449) | $ (1,324,123) | $ (3,880,489) | $ (4,243,133) |
Other comprehensive loss, net of nil tax | ||||
Foreign currency translation adjustments | (214,641) | (1,683) | (201,509) | (722) |
Comprehensive loss | (1,821,090) | (1,325,806) | (4,081,998) | (4,243,855) |
Comprehensive loss(gain) attributable to non-controlling interest | (3,588) | 7,196 | 139,368 | 128,641 |
Comprehensive loss attributable to YOU On Demand shareholders | $ (1,824,678) | $ (1,318,610) | $ (3,942,630) | $ (4,115,214) |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (3,880,489) | $ (4,243,133) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Share-based compensation expense | 211,840 | 681,376 |
Provision for doubtful accounts | 0 | 9,087 |
Depreciation and amortization | 220,806 | 184,825 |
Amortization of debt issuance costs | 122,696 | 0 |
Income tax benefit | (17,224) | (17,224) |
Equity in losses of equity method investees | 37,349 | 93,024 |
Loss on disposal of assets | 0 | 2,421 |
Change in fair value of warrant liabilities | (143,606) | (34,049) |
Foreign currency exchange losses | (153,334) | 0 |
Change in assets and liabilities: | ||
Accounts receivable | (1,405,355) | (1,598,494) |
Licensed content | (143,000) | 328,164 |
Prepaid expenses and other assets | (116,540) | (447,411) |
Accounts payable | 605,466 | (80,200) |
Accrued expenses, salary and other current liabilities | (6,084) | 375,847 |
Deferred revenue | (13,848) | 317,746 |
Accrued license content fees | 584,580 | 547,792 |
Net cash used in operating activities | (4,096,743) | (3,880,229) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (2,070,672) | (30,116) |
Investments in intangibles and research and development | (2,163,872) | (35,202) |
Investment in long term investments | (3,000,000) | 0 |
Net cash used in investing activities | (7,234,544) | (65,318) |
Cash flows from financing activities | ||
Proceeds from issuance of shares and warrant | 10,000,000 | 0 |
Net cash provided by financing activities | 10,000,000 | 0 |
Effect of exchange rate changes on cash | (33,849) | (1,314) |
Net decrease in cash | (1,365,136) | (3,946,861) |
Cash at beginning of period | 3,768,897 | 10,812,371 |
Cash at end of period | 2,403,761 | 6,865,510 |
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 0 | 0 |
Exchange of Series E Preferred Stock for common stock | 100 | 39 |
Issuance of convertible note for licensed content | 17,717,847 | 0 |
Issuance of shares for the settlement of liability | 75,000 | 0 |
Issuance of shares upon conversion of convertible note, including accrued interest and debt issuance cost | 17,733,297 | 0 |
Acquisition of long term investment through transfer of Game IP rights | 2,714,441 | 0 |
Payable for Game IP rights acquired | 603,209 | 0 |
Payable for workforce acquired | $ 131,358 | $ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | YOU On Demand Shareholders' Equity [Member] | Non-controlling Interest [Member] | Total |
Beginning Balance at Dec. 31, 2014 | $ 7,365 | $ 23,794 | $ 96,347,272 | $ (78,356,567) | $ (66,032) | $ 17,955,832 | $ (1,982,119) | $ 15,973,713 |
Beginning Balance (Shares) at Dec. 31, 2014 | 7,365,283 | 23,793,702 | ||||||
Share-based compensation | 251,356 | 251,356 | 251,356 | |||||
Common stock issued from conversion of convertible note | 0 | |||||||
Common stock issued for services | $ 25 | 92,495 | 92,520 | 92,520 | ||||
Common stock issued for services (Shares) | 24,999 | |||||||
Conversion of Series E Preferred Stock into common stock | $ (39) | $ 39 | ||||||
Conversion of Series E Preferred Stock into common stock (Shares) | (38,857) | 38,857 | ||||||
Exercise of options | $ 3 | (3) | ||||||
Exercise of options (Shares) | 2,811 | |||||||
Net loss attributable to YOU On Demand shareholders | (4,115,609) | (4,115,609) | (127,524) | (4,243,133) | ||||
Foreign currency translation adjustments, net of nil tax | 395 | 395 | (1,117) | (722) | ||||
Ending Balance at Jun. 30, 2015 | $ 7,326 | $ 23,861 | 96,691,120 | (82,472,176) | (65,637) | 14,184,494 | (2,110,760) | 12,073,734 |
Ending Balance (Shares) at Jun. 30, 2015 | 7,326,426 | 23,860,369 | ||||||
Beginning Balance at Dec. 31, 2015 | $ 7,255 | $ 24,249 | 97,512,542 | (86,457,840) | (414,910) | 10,671,296 | (2,388,031) | 8,283,265 |
Beginning Balance (Shares) at Dec. 31, 2015 | 7,254,997 | 24,249,109 | ||||||
Share-based compensation | $ 25 | 161,815 | 161,840 | 161,840 | ||||
Share-based compensation (Shares) | 25,000 | |||||||
Common stock issuance | $ 4,545 | 9,273,029 | 9,277,574 | 9,277,574 | ||||
Common stock issuance (Shares) | 4,545,455 | |||||||
Warrants issued in connection with common stock issuance | 722,426 | 722,426 | 722,426 | |||||
Issuance cost in connection with the issuance of common stock and warrants | (411,223) | (411,223) | (411,223) | |||||
Common stock issued from conversion of convertible note | $ 9,209 | 17,724,088 | 17,733,297 | 17,733,297 | ||||
Common stock issued from conversion of convertible note (Shares) | 9,208,860 | |||||||
Restricted Shares granted in connection with acquisition | 121,695 | 121,695 | 121,695 | |||||
Common stock issued for settlement of liability | $ 42 | 74,958 | 75,000 | 75,000 | ||||
Common stock issued for settlement of liability (Shares) | 41,780 | |||||||
Common stock issued from conversion of series E preferred stock | $ (100) | $ 100 | ||||||
Common stock issued from conversion of series E preferred stock (Shares) | (100,000) | 100,000 | ||||||
Net loss attributable to YOU On Demand shareholders | (3,724,560) | (3,724,560) | (155,929) | (3,880,489) | ||||
Foreign currency translation adjustments, net of nil tax | (218,070) | (218,070) | 16,561 | (201,509) | ||||
Ending Balance at Jun. 30, 2016 | $ 7,155 | $ 38,170 | $ 125,179,330 | $ (90,182,400) | $ (632,980) | $ 34,409,275 | $ (2,527,399) | $ 31,881,876 |
Ending Balance (Shares) at Jun. 30, 2016 | 7,154,997 | 38,170,204 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Jun. 30, 2016 | |
Organization and Principal Activities [Text Block] | 1. Organization and Principal Activities YOU On Demand Holdings, Inc. is a Nevada corporation that primarily operates in China (“PRC”) through its subsidiaries and consolidated variable interest entities (“VIEs”). The Company, its subsidiaries and consolidated VIEs are collectively referred to as YOU On Demand (“YOU On Demand”, “we”, “us”, or “the Company”). YOU On Demand provides premium content and integrated value-added service solutions for the delivery of Video-on-Demand (“VOD”) and paid video programming to digital cable providers, Internet Protocol Television (“IPTV”) providers, Over-the-Top (“OTT”) streaming providers, mobile manufacturers and operators. In the opinion of management, all adjustements (which include normal recurring adjustements) necessary to present a fair statement of the financial position as of June 30, 2016, results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015, have been made. All significant intercompany transactions and balances are eliminated on consolidation. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on March 30, 2016 (our “2015 Annual Report”). In 2016, the Company adopted the Accounting Standards Update ("ASU") No. 2015-03, Simplifying the Presentation of Debt Issuance Costs |
Going Concern and Management's
Going Concern and Management's Plans | 6 Months Ended |
Jun. 30, 2016 | |
Going Concern and Management's Plans [Text Block] | 2. Going Concern and Management’s Plans For the six months ended June 30, 2016 and 2015, the Company incurred net losses of approximately $3.9 million and $4.2 million, respectively, and cash used in operations was approximately $4.1 million and $3.9 million, respectively. Further, the Company had net current liabilities of $8.7 million as of June 30, 2016 and accumulated deficit of approximately $90.2 million and $82.5 million as of June 30, 2016 and 2015, respectively, due to recurring losses since the inception of our business. The Company must continue to rely on proceeds from debt and equity issuances to pay for ongoing operating expenses in order to execute its business plan. On March 28, 2016, the Company completed a common stock financing for $10.0 million. On July 6, 2016, the Company entered into a Common Stock Purchase Agreement with Seven Star Works Co. Ltd. (“SSW”) for a common stock financing of $4.0 million, and on August 11, 2016, the Company entered into a Common Stock Purchase Agreement with Harvest Alternative Investment Opportunities SPC (“Harvest”) for a common stock financing of $4.0 million. Although the Company believes it has the ability to raise funds by issuing debt or equity instruments, additional financing may not be available to the Company on terms acceptable to the Company or at all or such resources may not be received in a timely manner. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. |
VIE Structure and Arrangements
VIE Structure and Arrangements | 6 Months Ended |
Jun. 30, 2016 | |
VIE Structure and Arrangements [Text Block] | 3. VIE Structure and Arrangements a) Sinotop VIE structure and arrangement To comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provides value-added telecommunication services, the Company provides its services through Sinotop Beijing and its subsidiary, Zhong Hai Video, which holds the licenses and approvals to provide digital distribution and Internet content services in the PRC. The Company has the ability to control Sinotop Beijing and Zhong Hai Video through a series of contractual agreements entered into among YOD WFOE, YOD Hong Kong, Sinotop Beijing and the legal shareholders of Sinotop Beijing Prior to January 2016, we entered into a series of contractual agreements to give us the ability to control Sinotop Beijing with Zhang Yan, the legal shareholder of Sinotop Beijing (the spouse of our then-CEO). In January 2016, in connection with the appointment of our new CEO and in accordance with our rights under the contractual agreements, (1) the legal ownership of Sinotop Beijing was transferred from Zhang Yan to Bing Wu, the brother of our current Chairman and Yun Zhu, our Vice President and former Vice President of Beijing Sun Seven Stars Culture Development Limited (“SSS”), (2) the Company terminated the series of contractual arrangement with Zhang Yan, and (3) the Company entered into new contractual agreements with Bing Wu and Yun Zhu (collectively, the “New Sinotop VIE Agreements”). Although the New Sinotop VIE Agreements resulted in changes to the legal shareholders of Sinotop Beijing, there was no change in the Company’s ability to control Sinotop Beijing or the Company’s rights to 100% of the economic benefits of Sinotop Beijing. The Company was the primary beneficiary of Sinotop Beijing prior to the signing of the New Sinotop VIE Agreements and the Company remained the primary beneficiary of Sinotop Beijing after the signing of the New Sinotop VIE Agreements. Accordingly, the change in legal ownership of Sinotop Beijing did not have any impact to the Company’s consolidation of Sinotop Beijing. The key terms of the New Sinotop VIE Agreements are summarized as follows: Equity Pledge Agreement Pursuant to the Equity Pledge Agreement among YOD WFOE, Sinotop Beijing, Bing Wu and Yun Zhu (collectively, the “Nominee Shareholders”), the Nominee Shareholders pledged all of their equity interests in Sinotop Beijing (the “Collateral”) to YOD WFOE as security for the performance of the obligations of Sinotop Beijing to make all the required technical service fee payments pursuant to the Technical Services Agreement and for performance of the Nominee Shareholders’ obligation under the Call Option Agreement. The terms of the Equity Pledge Agreement expire upon satisfaction of all obligations under the Technical Services Agreement and Call Option Agreement. Call Option Agreement Pursuant to the Call Option Agreement among YOD WFOE, Sinotop Beijing and the Nominee Shareholders, the Nominee Shareholders granted an exclusive option to YOD WFOE, or its designee, to purchase, at any time and from time to time, to the extent permitted under PRC law, all or any portion of the Nominee Shareholders’ equity in Sinotop Beijing. The exercise price of the option shall be determined by YOD WFOE at its sole discretion, subject to any restrictions imposed by PRC law. The term of the agreement is until all of the equity interest in Sinotop Beijing held by the Nominee Shareholders are transferred to YOD WFOE, or its designee and may not be terminated by any part to the agreement without consent of the other parties. Power of Attorney Pursuant to the Power of Attorney agreements among YOD WFOE, Sinotop Beijing and each of the respective Nominee Shareholders, each of the Nominee Shareholders granted YOD WFOE the irrevocable right, for the maximum period permitted by law, all of its voting rights as shareholders of Sinotop Beijing. The Nominee Shareholders may not transfer any of its equity interest in Sinotop Beijing to any party other than YOD WFOE. The Power of Attorney agreements may not be terminated except until all of the equity in Sinotop Beijing has been transferred to YOD WFOE or its designee. Technical Service Agreement Pursuant to the Technical Service Agreement between YOD WFOE and Sinotop Beijing, YOD WFOE has the exclusive right to provide technical service, marketing and management consulting service, financial support service and human resource support services to Sinotop Beijing, and Sinotop Beijing is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by YOD WFOE. As compensation for providing the services, YOD WFOE is entitled to receive service fees from Sinotop Beijing equivalent to YOD WFOE’s cost plus 30% of such costs as calculated on accounting policies generally accepted in the PRC. YOD WFOE and Sinotop Beijing agree to periodically review the service fee and make adjustments as deemed appropriate. The term of the Technical Services Agreement is perpetual, and may only be terminated upon written consent of both parties. Spousal Consent Pursuant to the Spousal Consent, undersigned by the respective spouse of Nominee Shareholders (collectively, the “Spouses”), the Spouses unconditionally and irrevocably agreed to the execution of the Equity Pledge Agreement, Call Option Agreement and Power of Attorney agreement. The Spouses agreed to not make any assertions in connection with the equity interest of Sinotop Beijing and to waived consent on further amendment or termination of the Equity Pledge Agreement, Call Option Agreement and Power of Attorney agreement. The Spouses further pledge to execute all necessary documents and take all necessary actions to ensure appropriate performance under these agreements upon YOD WFOE’s request. In the event the Spouses obtain any equity interests of Sinotop Beijing which are held by the Nominee Shareholders, the Spouses agreed to be bound by the New Sinotop VIE Agreements, including the Technical Services Agreement, and comply with the obligations thereunder, including sign a series of written documents in substantially the same format and content as the New Sinotop VIE Agreements. Letter of Indemnification Pursuant to the Letter of Indemnification among YOD WFOE and Bing Wu and YOD WFOE and Yun Zhu, YOD WFOE agreed to indemnify Nominee Shareholders against any personal, tax or other liabilities incurred in connection with their role in equity transfer to the greatest extent permitted under PRC law. YOD WFOE further waived and released Nominee Shareholders from any claims arising from, or related to, their role as the legal shareholder of Sinotop Beijing, provided that their actions as a nominee shareholder are taken in good faith and are not opposed to YOD WFOE’s best interests. Conversely, the Nominee Shareholders will not be entitled to dividends or other benefits generated therefrom, or receive any compensation in connection with this arrangement. The Letter of Indemnification will remain valid until either Nominee Shareholders or YOD WFOE terminates the agreement by giving the other party hereto sixty (60) days’ prior written notice. In addition to the New Sinotop VIE Agreements, the Management Service Agreement between Sinotop Beijing and YOD Hong Kong continued to remain in effect, the key terms of which are as follows: Management Services Agreement Pursuant to a Management Services Agreement, as of March 9, 2010, YOD Hong Kong has the exclusive right to provide to Sinotop Beijing management, financial and other services related to the operation of Sinotop Beijing’s business, and Sinotop Beijing is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by YOD Hong Kong. As compensation for providing the services, YOD Hong Kong is entitled to receive a fee from Sinotop Beijing, upon demand, equal to 100% of the annual net profits as calculated on accounting policies generally accepted in the PRC of Sinotop Beijing during the term of the Management Services Agreement. YOD Hong Kong may also request ad hoc quarterly payments of the aggregate fee, which payments will be credited against Sinotop Beijing’s future payment obligations. The Management Services Agreement also provides YOD Hong Kong, or its designee, with a right of first refusal to acquire all or any portion of the equity of Sinotop Beijing upon any proposal by the sole shareholder of Sinotop Beijing to transfer such equity. In addition, at the sole discretion of YOD Hong Kong, Sinotop Beijing is obligated to transfer to YOD Hong Kong, or its designee, any part or all of the business, personnel, assets and operations of Sinotop Beijing which may be lawfully conducted, employed, owned or operated by YOD Hong Kong, including: (a) business opportunities presented to, or available to Sinotop Beijing may be pursued and contracted for in the name of YOD Hong Kong rather than Sinotop Beijing, and at its discretion, YOD Hong Kong may employ the resources of Sinotop Beijing to secure such opportunities; (b) any tangible or intangible property of Sinotop Beijing, any contractual rights, any personnel, and any other items or things of value held by Sinotop Beijing may be transferred to YOD Hong Kong at book value; (c) real property, personal or intangible property, personnel, services, equipment, supplies and any other items useful for the conduct of the business may be obtained by YOD Hong Kong by acquisition, lease, license or otherwise, and made available to Sinotop Beijing on terms to be determined by agreement between YOD Hong Kong and Sinotop Beijing; (d) contracts entered into in the name of Sinotop Beijing may be transferred to YOD Hong Kong, or the work under such contracts may be subcontracted, in whole or in part, to YOD Hong Kong, on terms to be determined by agreement between YOD Hong Kong and Sinotop Beijing; and (e) any changes to, or any expansion or contraction of, the business may be carried out at the sole discretion of YOD Hong Kong, and in the name of and at the expense of, YOD Hong Kong; provided, however, that none of the foregoing may cause or have the effect of terminating (without being substantially replaced under the name of YOD Hong Kong) or adversely affecting any license, permit or regulatory status of Sinotop Beijing. The term of the Management Services Agreement is 20 years, and may not be terminated by Sinotop Beijing, except with the consent of, or a material breach by, YOD Hong Kong. Pursuant to the above contractual agreements, YOD WFOE can have the assets transferred freely out of Sinotop Beijing without any restrictions. Therefore, YOD WFOE considers that there is no asset of Sinotop Beijing or Zhong Hai Video that can be used only to settle obligations of Sinotop Beijing or Zhong Hai Video, except for the registered capital of these two entities amounting to RMB17.0 million (approximately $2.6 million) as of June 30, 2016. As Sinotop Beijing and Zhong Hai Video are incorporated as limited liability companies under PRC Company Law, creditors of these two entities do not have recourse to the general credit of other entities of the Company. b) Tianjin Sevenstarflix Network Technology Limited ("SSF") VIE structure and arrangements To comply with PRC laws and regulations that prohibit or restrict foreign ownership of companies that provides value-added telecommunication services, the Company plans to also provide its services through SSF, which is applying to hold the licenses and approvals to provide digital distribution and Internet content services in the PRC. The Company has the ability to control SSF through a series of contractual agreements, as described below, entered into among YOD WFOE, YOD Hong Kong, SSF and the legal shareholders of SSF. On April 5, 2016, YOD WFOE, entered into variable interest entity agreements with SSF and its nominee shareholders pursuant to the Amended Tianjin Agreement dated December 21, 2015 (see Note 9 (c)) (the “SSF VIE Agreements”). Lan Yang, holder of 99% equity ownership in SSF and a party to certain of the SSF VIE Agreements, is the spouse of Bruno Zheng Wu, the Company’s Chairman. Yun Zhu, holder of 1% equity ownership in SSF and a party to certain of the SSF VIE Agreements, is the Vice President of SSS. The terms of the SSF VIE Agreements are as follows: Equity Pledge Agreement Pursuant to the Equity Pledge Agreement among YOD WFOE, Lan Yang and Yun Zhu (the “Nominee Shareholders”), dated April 5, 2016, the Nominee Shareholders pledged all of their capital contribution rights in SSF to YOD WFOE as security for the performance of the obligations of SSF to make all the required technical service fee payments pursuant to the Technical Services Agreement and for performance of the Nominee Shareholders’ obligation under the Call Option Agreement. The terms of the Equity Pledge Agreement expire upon satisfaction of all obligations under the Technical Services Agreement and Call Option Agreement. Call Option Agreement Pursuant to the Call Option Agreement among YOD WFOE, SSF and the Nominee Shareholders, dated April 5, 2016, the Nominee Shareholders granted an exclusive option to YOD WFOE, or its designee, to purchase, at any time and from time to time, to the extent permitted under PRC law, all or any portion of the Nominee Shareholders’ equity in SSF. The exercise price of the option shall be determined by YOD WFOE at its sole discretion, subject to any restrictions imposed by PRC law. The term of the agreement is until all of the equity interest in SSF held by the Nominee Shareholders is transferred to YOD WFOE, or its designee and may not be terminated by any party to the agreement without consent of the other parties. Power of Attorney Pursuant to the Power of Attorney agreements among YOD WFOE, SSF and each of the respective Nominee Shareholders, dated April 5, 2016, each of the Nominee Shareholders granted YOD WFOE the irrevocable right, for the maximum period permitted by law, to all of its voting rights as shareholders of SSF. The Nominee Shareholders may not transfer any of their equity interest in SSF to any party other than YOD WFOE. The Power of Attorney agreements may not be terminated except until all of the equity in SSF has been transferred to YOD WFOE or its designee. Technical Service Agreement Pursuant to the Technical Service Agreement, dated April 5, 2016, between YOD WFOE and SSF, YOD WFOE has the exclusive right to provide technical service, marketing and management consulting service, financial support service and human resource support services to SSF, and SSF is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by YOD WFOE. As compensation for providing the services, YOD WFOE is entitled to receive service fees from SSF equivalent to YOD WFOE’s cost plus 20 - 30% of such costs as calculated on accounting policies generally accepted in the PRC. YOD WFOE and SSF agree to periodically review the service fee and make adjustments as deemed appropriate. The term of the Technical Services Agreement is perpetual, and may only be terminated upon written consent of both parties. Spousal Consent Pursuant to the Spousal Consent, dated April 5, 2016, undersigned by the respective spouse of the Nominee Shareholders (collectively, the “Spouses”), the Spouses unconditionally and irrevocably agreed to the execution of the Equity Pledge Agreement, Call Option Agreement and Power of Attorney agreement. The Spouses agreed to not make any assertions in connection with the equity interest of SSF and to waive consent on further amendment or termination of the Equity Pledge Agreement, Call Option Agreement and Power of Attorney agreement. The Spouses further pledge to execute all necessary documents and take all necessary actions to ensure appropriate performance under these agreements upon YOD WFOE’s request. In the event the Spouses obtain any equity interests of SSF which are held by the Nominee Shareholders, the Spouses agreed to be bound by the SSF VIE Agreements, including the Technical Services Agreement, and comply with the obligations thereunder, including sign a series of written documents in substantially the same format and content as the SSF VIE Agreements. Letter of Indemnification Pursuant to the Letter of Indemnification among YOD WFOE and Lan Yang and YOD WFOE and Yun Zhu, both dated as of April 5, 2016, YOD WFOE agreed to indemnify Nominee Shareholders against any personal, tax or other liabilities incurred in connection with their role in equity transfer to the greatest extent permitted under PRC law. YOD WFOE further waived and released the Nominee Shareholders from any claims arising from, or related to, their role as the legal shareholder of SSF, provided that their actions as a nominee shareholder are taken in good faith and are not opposed to YOD WFOE’s best interests. The Nominee Shareholders will not be entitled to dividends or other benefits generated therefrom, or receive any compensation in connection with this arrangement. The Letter of Indemnification will remain valid until either the Nominee Shareholders or YOD WFOE terminates the agreement by giving the other party hereto sixty (60) days’ prior written notice. Loan Agreement Pursuant to the Loan Agreement among YOD WFOE and the Nominee Shareholders, dated April 5, 2016, YOD WFOE agrees to lend RMB19.8 million and RMB0.2 million, respectively, to the Nominee Shareholders for the purpose of establishing SSF and for development of its business. As of June 30, 2016, RMB17.8 million (US $2.7 million) and RMBnil have been lent to Lan Yang and Yun Zhu, respectively. Lan Yang has contributed all of the RMB17.8 million (US $2.7 million) in the form of capital contribution and accordingly the loan is eliminated with the capital of SSF upon consolidation. The loan can only be repaid by a transfer by the Nominee Shareholders of their equity interests in SSF to YOD WFOE or YOD WFOE's designated persons, through (i) YOD WFOE having the right, but not the obligation to at any time purchase, or authorize a designated person to purchase, all or part of the Nominee Shareholders’ equity interests in SSF at such price as YOD WFOE shall determine (the “Transfer Price”), (ii) all monies received by the Nominee Shareholders through the payment of the Transfer Price being used solely to repay YOD WFOE for the loans, and (iii) if the Transfer Price exceeds the principal amount of the loans, the amount in excess of the principal amount of the loans being deemed as interest payable on the loans, and to be payable to YOD WFOE in cash. Otherwise, the loans shall be deemed to be interest-free. The term of the Loan Agreement is perpetual, and may only be terminated upon the Nominee Shareholders receiving repayment notice, or upon the occurrence of an event of default under the terms of the agreement. Management Services Agreement In addition to the SSF VIE Agreements, the Company’s subsidiary and the parent company of YOD WFOE, YOU On Demand (Asia) Limited, a company incorporated under the laws of Hong Kong (“YOD Hong Kong”) entered into a Management Services Agreement with SSF, dated as of April 6, 2016 (the “Management Services Agreement”). Pursuant to a Management Services Agreement, YOD Hong Kong has the exclusive right to provide to SSF management, financial and other services related to the operation of SSF’s business, and SSF is required to take all commercially reasonable efforts to permit and facilitate the provision of the services by YOD Hong Kong. As compensation for providing the services, YOD Hong Kong is entitled to receive a fee from SSF, upon demand, equal to 100% of the annual net profits as calculated on accounting policies generally accepted in the PRC of SSF during the term of the Management Services Agreement. YOD Hong Kong may also request ad hoc quarterly payments of the aggregate fee, which payments will be credited against SSF’s future payment obligations. In addition, at the sole discretion of YOD Hong Kong, SSF is obligated to transfer to YOD Hong Kong, or its designee, any part or all of the business, personnel, assets and operations of SSF which may be lawfully conducted, employed, owned or operated by YOD Hong Kong, including: (a) business opportunities presented to, or available to SSF may be pursued and contracted for in the name of YOD Hong Kong rather than SSF, and at its discretion, YOD Hong Kong may employ the resources of SSF to secure such opportunities; (b) any tangible or intangible property of SSF, any contractual rights, any personnel, and any other items or things of value held by SSF may be transferred to YOD Hong Kong at book value; (c) real property, personal or intangible property, personnel, services, equipment, supplies and any other items useful for the conduct of the business may be obtained by YOD Hong Kong by acquisition, lease, license or otherwise, and made available to SSF on terms to be determined by agreement between YOD Hong Kong and SSF; (d) contracts entered into in the name of SSF may be transferred to YOD Hong Kong, or the work under such contracts may be subcontracted, in whole or in part, to YOD Hong Kong, on terms to be determined by agreement between YOD Hong Kong and SSF; and (e) any changes to, or any expansion or contraction of, the business may be carried out in the exercise of the sole discretion of YOD Hong Kong, and in the name of and at the expense of, YOD Hong Kong; provided, however, that none of the foregoing may cause or have the effect of terminating (without being substantially replaced under the name of YOD Hong Kong) or adversely affecting any license, permit or regulatory status of SSF. The term of the Management Services Agreement is 20 years, and may not be terminated by SSF, except with the consent of, or a material breach by, YOD Hong Kong. Pursuant to the above contractual agreements, YOD WFOE can have the assets transferred freely out of SSF without any restrictions. Therefore, YOD WFOE considers that there is no asset of SSF that can be used only to settle obligation of YOD WFOE, except for the registered capital of SSF amounting to RMB50.0 million (approximately $7.5 million), among which RMB17.8 million (approximately $2.8 million) has been injected as of June 30, 2016. As SSF is incorporated as limited liability company under PRC Company Law, creditors of these two entities do not have recourse to the general credit of other entities of the Company. Financial Information The following financial information of our VIEs, as applicable for the periods presented, affected the Company's consolidated financial statements. June 30, December 31, 2016 2015 ASSETS Current assets: Cash $ 736,240 $ 1,001,094 Accounts receivable, net 3,094,770 1,689,415 Licensed content, current 711,683 556,591 Prepaid expenses 219,242 98,893 Other current assets 130,810 133,582 Intercompany receivables due from the Company's subsidiaries (i) 157,676 161,017 Total current assets 5,050,421 3,640,592 Property and equipment, net 88,776 149,880 Licensed content, non-current 8,993 21,085 Intangible assets, net 200,098 253,771 Long term investments 3,118,445 450,115 Other non-current assets 59,355 58,026 Total assets $ 8,526,088 $ 4,573,469 LIABILITIES Current liabilities: Accounts payable $ 651,254 $ 44,867 Deferred revenue 1,232 15,080 Accrued expenses 390,176 280,038 Other current liabilities 361,908 298,422 Accrued salaries - 10,861 Accrued license content fees 1,518,112 933,532 Intercompany payables due to the Company's subsidiaries (i) 12,904,733 12,512,954 Total current liabilities 15,827,415 14,095,754 Total liabilities $ 15,827,415 $ 14,095,754 Six Months Ended June 30, June 30, 2016 2015 Revenue $ 2,750,190 $ 2,507,576 Net loss $ (671,644 ) $ (731,763 ) Six Months Ended June 30, June 30, 2016 2015 Net cash used in operating activities $ (730,019 ) $ 329,740 Net cash used in investing activities $ (2,165,477 ) $ (64,002 ) Net cash provided by intercompany financing activities (i) $ 2,630,642 $ - (i) Intercompany receivables and payables are eliminated upon consolidation The revenue producing assets that are held by the VIEs and a VIE’s subsidiary comprise of licensed content, network equipment, charter/cooperation agreements, software and licenses and website and mobile app development. Substantially all of such assets are recognized in the Company’s consolidated financial statements, except for certain Internet Content Provider licenses, internally developed software, trademarks and patent applications which were not recorded on the Company’s consolidated balance sheets as they do not meet all the capitalization criteria. The VIEs also have assembled work force for sales, marketing and operations. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment [Text Block] | 4. Property and Equipment The following is a breakdown of our property and equipment: June 30, December 31, 2016 2015 Furniture and office equipment $ 919,685 $ 910,420 Leasehold improvements 190,722 190,722 Total property and equipment 1,110,407 1,101,142 Less: accumulated depreciation (1,016,818 ) (946,708 ) Property and Equipment, net $ 93,589 $ 154,434 We recorded depreciation expense of approximately $34,000 and $68,000 for the three and six months ended June 30, 2016 and $49,000 and $100,000 for the three and six months ended June 30, 2015 respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Intangible Assets [Text Block] | 5. Intangible Assets As of June 30, 2016 and December 31, 2015, the Company’s amortizing and indefinite lived intangible assets consisted of the following: June 30, 2016 December 31, 2015 Amortizing Intangible Gross Carrying Accumulated Net Gross Carrying Accumulated Net Assets Amount Amortization Balance Amount Amortization Balance Charter/ Cooperation agreements $ 2,755,821 (815,268 ) 1,940,553 $ 2,755,821 $ (746,372 ) $ 2,009,449 Software and licenses 284,233 (245,016 ) 39,217 253,930 (234,947 ) 18,983 Website and mobile app development 653,830 (456,987 ) 196,843 653,830 (403,961 ) 249,869 Workforce 305,693 (25,474 ) 280,219 - - - Total amortizing intangible assets $ 3,999,577 (1,542,745 ) 2,456,832 $ 3,663,581 $ (1,385,280 ) $ 2,278,301 Indefinite lived intangible assets Website name 134,290 - 134,290 134,290 - 134,290 Total intangible assets $ 4,133,867 (1,542,745 ) 2,591,122 $ 3,797,871 $ (1,385,280 ) $ 2,412,591 On April 1, 2016, YOD entered into an agreement with Mr. Liu Changsheng, under which YOD agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with six month restriction period in exchange for a workforce of 10 personnel experienced in programing content mobile apps to enter into three year employment contracts with YOD effective from April 1, 2016, as well as certain laptops and desktops with fair value of $3,655. According to the agreement, 30% of the cash consideration is due right after the signing of agreement, 20% is due in 2 months after the signing of agreement and the rest of 50% is due in 6 months after the signing of agreement. Cash consideration of $59,295 has been paid as of June 30, 2016 and $37,530 was paid on July 4, 2016. If any of three key staff, as defined, terminated their employment with YOD during the first 12 months of employment, YOD has right to forfeit the unpaid cash consideration. In addition, Mr. Liu Changsheng would be required to pay a default penalty at minimal of $129,180. YOD has accounted for the transaction as an asset acquisition in which YOD mainly acquired a workforce, which is recognized as an intangible asset at cost. Subsequently, the workforce intangible is amortized over the employment term of three years. We recorded amortization expense related to our amortizing intangible assets of approximately $90,000 and $153,000 for the three and six months ended June 30, 2016 and $46,000 and $85,000 for the three and six months ended June 30, 2015 respectively, which included the amortization expense of the workforce acquired as stated above. The following table outlines the amortization expense for the next five years and thereafter: Amortization to be Years ending December 31, Recognized 2016 (6 months) $ 179,641 2017 346,769 2018 304,061 2019 168,079 2020 137,792 2021 137,792 Thereafter 1,182,698 Total amortization to be recognized $ 2,456,832 |
Long Term Investments
Long Term Investments | 6 Months Ended |
Jun. 30, 2016 | |
Long Term Investments [Text Block] | 6. Long Term Investments (1) Long Term Investments under Cost Method (a) Investment in Topsgames On April 13, 2016, SSF entered into a Game Right Assignment Agreement with SSS for the acquisition of certain game IP rights (“Game IP Rights”) for approximately $2.7 million (RMB18 million) in cash. As of June 30, 2016, approximately $2.1 million has ben paid out to SSS. On April 15, 2016, SSF entered into a Capital Increase Agreement with Nanjing Tops Game Co., Ltd. (“Topsgame”) and its shareholders whereby SSF transferred the Game IP Rights acquired from SSS to Topsgame in exchange for 13% of Topsgame’s equity ownership. Topsgame is a PRC company that specializes in the independent development and operation of online, stand-alone and other games as well as the distribution of domestic and overseas games. The investment was part of the Company’s transformation and expansion strategy. The Company’s 13% ownership interest does not provide the Company with the right to nor does the Company have representation on the board of directors of Topsgame. The Company has recognized the cost of the investment in Topsgame, which is a private company with no readily determinable fair value, equal to the fair value of Game IP Rights of approximately $2.7 million and account for the investment using the cost method of accounting. (b) Investment in Frequency In April 2016, the Company and Frequency Networks Inc. (“Frequency”) entered into a Series A Preferred Stock Purchase Agreement (the “SPA”) for the purchase of 8,566,271 shares of Series A Preferred Stock, Frequency (the “Frequency Preferred Stock”) for a total purchase price of $3.0 million. The 8,566,271 Series A Preferred Stock represent 13% ownership and voting interest on an as converted basis and does not provide the Company with the right to nor does the Company have representation on the board of directors of Frequency. The Frequency Preferred Stock is entitled to non-cumulative dividends at the rate of $0.02548 per share per annum, declared at the discretion of Frequency’s board of directors. The Frequency Preferred Stock is also convertible into shares of Frequency common stock at the Company’s election any time after issuance on a 1:1 basis, subject to certain adjustment. Each share of Frequency Preferred Stock also has a liquidation preference of $0.42467 per share, plus any declared but unpaid dividends. The Company has recognized the cost of the investment in Frequency, which is a private company with no readily determinable fair value, at its cost of $3 million and account for the investment using the cost method of accounting (2) Long Term Investment under Equity Method (c) Investment in Shandong Media and Hua Cheng Investments in entities where the Company can exercise significant influence, but not control, is classified as a long-term equity investment and accounted for using the equity method. Under the equity method, the investment is initially recorded at cost and adjusted for the Company’s share of undistributed earnings or losses of the investee. Investment losses are recognized until the investment is written down to nil provided the Company does not guarantee the investee’s obligations nor it is committed to provide additional funding. As of and for the period ended June 30, 2016 and December 31, 2015, the Company’s long term equity investments are comprised of the Company’ investment in Shandong Lushi Media Co., Ltd. (“Shandong Media”) and Hua Cheng Hu Dong (Beijing) Film and Television Communication Co., Ltd. (“Hua Cheng”), which are 30% and 39%, respectively, owned by Sinotop Beijing. The long term investment in Shandong Media was nil and nil as of June 30, 2016 and December 31, 2015 respectively, and the long term investment in Hua Cheng was $0.4 million and $0.5 million as of June 30, 2016 and December 31, 2015 respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements [Text Block] | 7. Fair Value Measurements Accounting standards require the categorization of financial assets and liabilities, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The various levels of the fair value hierarchy are described as follows: • Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access. • Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. • Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Accounting standards require the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We review the valuation techniques used to determine if the fair value measurements are still appropriate on an annual basis, and evaluate and adjust the unobservable inputs used in the fair value measurements based on current market conditions and third party information. Common stock is valued at closing price reported on the active market on which the individual securities are traded. The fair value of the warrant liabilities at June 30, 2016 were valued using the Black-Scholes Merton method as an estimate for the Monte Carlos Simulation method which was the method used at the year ended December 31, 2015. The following assumptions were incorporated: Black Scholes Monte Carlo June 30, December 31, 2016 2015 Risk-free interest rate 0.45% 0.92% Expected volatility 60% 60% Expected term 1.17 years 1.67 years Expected dividend yield 0% 0% The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, respectively: June 30, 2016 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Warrant liabilities (see Note 10) $ - $ - $ 251,611 $ 251,611 December 31, 2015 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Warrant liabilities (see Note 10) $ - $ - $ 395,217 $ 395,217 The table below reflects the components effecting the change in fair value for the six months ended June 30, 2016: Level 3 Assets and Liabilities For the Six Months Ended June 30 , 2016 Change in January 1, Fair Value June 30, 2016 Settlements gain 2016 Liabilities: Warrant liabilities (see Note 10) $ 395,217 $ - $ (143,606 ) $ 251,611 On March 28, 2016, the Company issued common stock and warrant to SSS (see Note 9). The warrant is considered an equity classified instrument and the fair value of the warrant on March 28, 2016 was $672,727, which was valued using the Monte Carlos Simulation method. The following assumptions were incorporated: Monte Carlo March 28, 2016 Risk-free interest rate 0.89% Expected volatility 60% Expected term 2 years Expected dividend yield 0% The significant unobservable inputs used in the fair value measurement of the Company’s warrant includes the risk free interest rate, expected volatility, expected term and expected dividend yield. Significant increases or decreases in any of those inputs in isolation would result in a significantly different fair value measurement. The carrying amount of cash, accounts receivable, accounts payable, accrued expenses, other payables and convertible note as of June 30, 2016 and December 31, 2015, approximate fair value because of the short maturity of these instruments. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Text Block] | 8. Related Party Transactions (a) $3.0 Million Convertible Note On May 10, 2012, the Company’s then Executive Chairman and Principal Executive Officer and current Vice Chairman, 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”) at a 4% interest rate computed on the basis of a 365 day year. Upon issuance, the conversion price of the Note was equal to the price per share paid for securities by investors in the most recent financing (as of the date of conversion) of equity or equity-linked securities of the Company. Effective on January 31, 2014, the Company and Mr. McMahon entered into an amendment the Note pursuant to which the Note is, at Mr. McMahon’s option, payable on demand or convertible on demand into shares of Series E Preferred Stock of the Company (the “Series E Preferred Stock”) at a conversion price of $1.75, until December 31, 2015. As a result, in 2014, the Company recognized a beneficial conversion feature discount calculated as the difference between the fair value of the common stock at the commitment date for the Series E Preferred Stock investment and the effective conversion price. As such, the Company recognized a beneficial conversion feature of approximately $2,126,000 which in 2014 was reflected as interest expense and additional paid-in capital since the note was payable upon demand. Effective December 30, 2014, the Company and Mr. McMahon entered into another amendment pursuant to which the maturity date of the Note was extended to December 31, 2016. The Note remains payable on demand or convertible on demand into shares of Series E Preferred Stock at a conversion price of $1.75 at Mr. McMahon’s option. For the three and six months ended June 30, 2016, the Company recorded interest expense of $30,000 and $60,000, respectively, related to the Note; For the three and six months ended June 30, 2015, the Company recorded interest expense of $30,000 and $60,000, respectively, related to the Note. (b) Revenue and Accounts Receivable In March 2015, Zhong Hai Video entered into an agreement with C Media Limited (“C Media”), a beneficial owner of more than 5% of our capital stock, controlled by our director Xuesong Song, to provide video content services via C Media’s proprietary railway Wi-Fi service platform. For the three months ended June 30, 2016 and June 30, 2015, total revenue recognized amounted to nil and nil, respectively. For the six months ended June 30, 2016 and June 30, 2015, total revenue recognized amounted to nil and $182,000, respectively. As of June 30, 2016, total accounts receivable due from C Media amounted to approximately $91,000. (c) Cost of Revenue Hua Cheng, the minority shareholder of Zhong Hai Video, charged us licensed content fees of approximately $37,000 and $56,000 for the three months ended June 30, 2016 and 2015, and approximately $93,000 and $80,000 for the six months ended June 30, 2016 and 2015, respectively. As of June 30 2016, total accrued license content fees due to Hua Cheng amounted to approximately $112,000. (d) Purchase of Game IP Rights On April 13, 2016, SSF entered into a Game Right Assignment Agreement with SSS for the acquisition of certain Game IP Rights for cash based on total fair value of the Game IP Rights, which was determined to be approximately $2.7 million (RMB18 million). The Game IP Rights was recorded at cost and then subsequently transferred in exchange for the investment in Topsgame as disclosed in Note 6 above. |
SSS Agreements
SSS Agreements | 6 Months Ended |
Jun. 30, 2016 | |
SSS Agreements [Text Block] | 9. SSS Agreements On November 23, 2015, the Company entered into a series of agreements for a strategic investment by SSS, a PRC company in the media and entertainment industry that is controlled by the Company’s Chairman, Bruno Zheng Wu. The strategic investment by SSS included a private placement of equity securities of the Company, a content licensing agreement, and the potential for Tianjin Enternet Network Technology Limited (“Tianjin Enternet”), an affiliate of SSS, to earn additional shares of the Company’s common stock contingent on the performance of SSF. SSF intends to provide a branded pay content service, consumer payments and behavior data analysis service, customer management and data-based service and mobile social TV-based customer management service. On December 21, 2015, the Company entered into an Amended and Restated Securities Purchase Agreement (the “Amended SSS Purchase Agreement”) and a Revised Content License Agreement (the “Revised Content Agreement”) with SSS which amended certain terms of the original agreements dated November 23, 2015. In addition, the Company also entered into an Amended and Restated Share Purchase Agreement (the “Amended Tianjin Agreement”) with Tianjin Enternet. (a) Amended SSS Purchase Agreement On March 28, 2016, pursuant to the Amended SSS Purchase Agreement, the Company sold, and SSS purchased, 4,545,455 shares of the Company’s common stock for a purchase price of $2.20 per share, or an aggregate of $10.0 million. In addition, SSS received a two-year warrant to acquire an additional 1,818,182 shares of the Company’s common stock at an exercise price of $2.75 per share (the “SSS Warrant”). Until receipt of necessary shareholder approvals, the SSS Warrant may not be exercised to the extent that such exercise would result in SSS and its affiliates beneficially owning more than 19.99% of the Company’s outstanding common stock, which was obtained on June 27, 2016. On June 27, 2016, shareholder approval was obtained. Since the SSS Warrant does not embody any future obligation for the Company to repurchase its own shares, is indexed to the Company’s own stock, may only be settled by the physical delivery of shares, and no conditions exist in which net cash settlement could be forced upon the Company by SSS in any other circumstances, the SSS Warrant is considered an equity classified instrument. The proceeds of $10.0 million, net of issuance cost of approximately $443,000,was allocated to common stock and SSS Warrant based on their relative fair value as of March 28, 2016 of approximately $8,227,000 and $673,000, respectively. Accordingly, the Company recorded approximately $722,000 in additional paid-in capital for the SSS Warrant. (b) Revised Content Agreement On March 28, 2016, pursuant to the Amended and Restated SSS Purchase Agreement, SSS granted the Company non-exclusive royalty-free distribution rights for certain video content value at approximately $29.1 million in exchange for a convertible promissory note (the “SSS Note”). The SSS Note has a stated principal amount of approximately $17,718,000, was originally due to mature on May 21, 2016, and beard an interest at the rate of 0.56% per annum. Immediately upon the receipt of the required shareholder approval to allow SSS to beneficially own more than 19.99% of the Company’s outstanding common stock, which was obtained on June 27, 2016, the SSS Note was automatically converted into 9,208,860 shares of the Company’s common stock. On June 27, 2016, shareholder approval was obtained. In connection with the issuance of the SSS Note, the Company recorded debt issuance costs of approximately $131,000 which is to be amortized over the period of the SSS Note’s maturity date, of which approximately $115,000 and $122,000 was recognized during the three and six months ended June 30, 2016 respectively. The Company measured the effective conversion price of the SSS Note using its carrying value on March 28, 2016 and compared it to the fair value of the Company’s common stock on that date. As the effective conversion price of the SSS Note of $1.91 exceeded the fair value of the Company’s common stock, no beneficial conversion feature was recognized. On May 12, 2016, the Company and SSS entered into an amendment agreement to extend the maturity date of the SSS Note to July 31, 2016. In the Annual Meeting of Shareholders (the “Annual Meeting”) of the Company held on June 27, 2016, shareholders approved the issuance of 9,208,860 shares of the Company’s common stock upon the conversion of the SSS Note and it was automatically converted into 9,208,860 shares of the Company’s common stock on June 27, 2016. The carrying value of the SSS Note as of June 27, 2016, which included the unamortized issuance costs of $9,000 and, pursuant to the terms of SSS Note, accrued interest expense (as to the date of conversion) of $24,000 has been recorded into the common shares issued on June 27, 2016. (c) Amended Tianjin Agreement Pursuant to the Amended Tianjin Agreement dated December 21, 2015, Tianjin Enternet was to contribute 100% of the equity ownership of SSF, a newly-formed subsidiary of Tianjin Enternet to the Company. Contingent on the performance of SSF, Tianjin will receive shares of the Company’s common stock over three years, with the exact number not exceeding 5.0 million per year, provided the earn-out provisions for each of the 2016, 2017 and 2018 annual periods (the “Earn-Out Share Award”) are achieved. The earn-out provision for 2016, 2017 and 2018 are either 50.0 million homes/users passed or $4.0 million net income, 100.0 million homes/users passed or $6.0 million net income and 150.0 million homes/users passed or $8.0 million net income, respectively. In the event that the Company has not obtained the required vote from shareholders to issue the earn-out shares to Tianjin Enternet, the Company shall issue a promissory note with a principal amount equal to the quotient by multiplying 5.0 million by the applicable stock price defined in the agreement. On April 5, 2016, in lieu of Tianjin Enternet contributing 100% of the equity ownership of SSF to the Company, YOD WFOE entered into VIE agreements with SSF and its legal shareholders in order to comply with PRC regulatory requirements on certain industries. SSF is 99% owned by Lan Yang, the spouse of Bruno Zheng Wu, the Company’s Chairman, and 1% owned by Yun Zhu, a Vice President of YOD. By virtue of these VIE agreements; YOD WFOE obtained financial controlling interest in SSF, including the power to direct the activities of SSF, and therefore is the primary beneficiary of SSF. As the control of SSF was transferred to YOD WFOE through both the VIE agreements and physical handover of company documents on April 5, 2016, the transaction was determined to be completed on that date. At the time YOD WFOE obtained control over SSF, SSF had no assets, liabilities, employees or operating activities, nor did it hold any licenses, trade names or other intellectual properties. The Company also did not receive any assets, employees, contracts, sales or distribution systems or intellectual property from Tianjin Enternet in connection with the transaction. Since the acquisition of SSF did not include any input or processes, as defined under ASC 805-10-20, the transaction was not considered a business combination under ASC 805. The earn-out provision is based on either the number of home/user pass or the net income of SSF. While the net income is measured based on the operations of SSF, the number of home/user pass is measured based on number of home/user pass of SSF’s distributors. Such earn-out provision is based on an index that is not calculated solely by reference to the operations of SSF, which is not considered indexed to the Company’s own shares. Also the earn-out provisions permit cash settlement if the Company cannot issue the earn-out shares. Therefore, the earn-out provision is classified as a liability and measured initially and subsequently at fair value with changes in fair value recognized in earnings at each reporting periods. On June 27, 2016, the Company held its 2016 annual meeting of stockholders and received approval from its stockholders to allow SSS to beneficially own more than 19.99% of the Company's outstanding common stock. Accordingly, the Earn-Out Share Award became issuable at the time when the earn-out provisions are considered to have been met pursuant to the Amended Tianjin Agreement. The Company obtained control of SSF on April 5, 2016. As of June 30, 2016, SSF had yet to receive all business licenses necessary to conduct its new business, including any Internet, telecommunication or content related sales and operations. Accordingly, the liability recognized was nil as of June 30, 2016 because the conditions to trigger the issuance of the Earn-Out Share Award were not probable of being met. |
Warrant Liabilities
Warrant Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Warrant Liabilities [Text Block] | 10. Warrant Liabilities In connection with our August 30, 2012 private financing, we issued investors and a broker warrants to acquire 977,063 shares of the Company’s common stock of which 440,813 shares were exercised prior to January 1, 2015. In accordance with FASB ASC 815-40-15-5, Determining Whether an Instrument (or Embedded Feature) is indexed to an Entity’s Own Stock; the warrants have been accounted as derivative liabilities to be re- measured at the end of every reporting period with the change in value reported in the consolidated statement of operations. On August 30, 2012, such warrants were valued at $1,525,000 utilizing a valuation model and were initially recorded as a liability. The warrants are revalued at each year end based on the Monte Carlo valuation. As of June 30, 2016 and December 31, 2015, the warrant liability was re-valued as disclosed in Note 7, and recorded at its current fair value of approximately $252,000 and $395,000, respectively, as determined by the Company, resulting in a gain of approximately $143,000 for the six months ended June 30, 2016. There were no warrants exercised during six months ended June 30, 2016 and 2015, respectively. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2016 | |
Share-Based Payments [Text Block] | 11. Share-Based Payments As of June 30, 2016, the Company had 1,696,428 options and 1,964,820 warrants outstanding to purchase shares of our common stock. (a) Stock Options The Company awards common stock and stock options to employees and directors as compensation for their services, and accounts for its stock option awards to employees and directors pursuant to the provisions of ASC 718, Stock Compensation Total share-based payments expense recorded by the Company during the three and six months ended June 30, 2016 and 2015 is as follows: Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 2016 2015 2016 2015 Employees and directors share-based payments $ 73,000 $ 277,000 $ 212,000 $ 681,000 Effective as of December 3, 2010, our Board of Directors approved the YOU On Demand Holdings, Inc. 2010 Stock Incentive Plan (“the Plan”) pursuant to which options or other similar securities may be granted. The maximum aggregate number of shares of our common stock that may be issued under the Plan is 4,000,000 shares. As of June 30, 2016, options available for issuance are 1,694,467 shares. Stock option activity for the six months ended June 30, 2016 is summarized as follows: Weighted Average Remaining Aggregated Options Weighted Average Contractual Life Intrinsic Outstanding Exercise Price (Years) Value Outstanding at January 1, 2016 1,734,429 $ 2.77 Granted - - Exercised - - Expired (25,897 ) 1.65 Forfeited (12,104 ) 1.65 Outstanding at June30, 2016 1,696,428 2.79 3.99 - Vested and expected to vest as of June 30, 2016 1,696,428 2.79 3.99 - Options exercisable at June 30, 2016 (vested) 1,684,707 2.80 3.97 - As of June 30, 2016, approximately $15,000 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of approximately 1.17 years. The total fair value of shares vested during the six months ended June 30, 2016 and 2015 was approximately $9,000 and $251,000 respectively. (b) Warrants In connection with the Company’s financings, the Warner Brother Agreement and the service agreements, the Company issued warrants to investors and service providers to purchase common stock of the Company. As of June 30, 2016, the weighted average exercise price of the warrants was $1.86 and the weighted average remaining life was 2.12 years. The May 2011 Warner Brothers Warrants of 200,000 and 2011 Service Agreement Warrants of 26,667 expired as of June 30, 2016. The following table outlines the warrants outstanding and exercisable as of June 30, 2016 and December 31, 2015: June 30, December 31, 2016 2015 Number of Number of Warrants Warrants Exercise Expiration Warrants Outstanding Outstanding Outstanding Price Date and Exercisable and Exercisable May 2011 Warner Brothers Warrants - 200,000 $ 6.60 05/11/16 2011 Service Agreement Warrants - 26,667 $ 7.20 06/15/16 2012 August Financing Warrants (i) 536,250 536,250 $ 1.50 08/30/17 2013 Broker Warrants (Series D Financing) 228,571 228,571 $ 1.75 07/05/18 2013 Broker Warrants (Convertible Note) 114,285 114,285 $ 1.75 11/04/18 2014 Broker Warrants (Series E Financing) 1,085,714 1,085,714 $ 1.75 01/31/19 1,964,820 2,191,487 (i) The warrants are classified as derivative liabilities as disclosed in Note 10. |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Net Loss Per Common Share [Text Block] | 12. Net Loss Per Common Share Basic net loss per common share attributable to YOU On Demand shareholders is calculated by dividing the net loss attributable to YOU On Demand shareholders by the weighted average number of outstanding common shares during the applicable period. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive. For the six months ended June 30, 2016 and 2015, the number of securities convertible into common shares not included in diluted loss per common share because the effect would have been anti-dilutive consists of the following: June 30, June 30, 2016 2015 Warrants 3,783,002 2,191,487 Options 1,696,428 1,723,153 Series A Preferred Stock 933,333 933,333 Series E Preferred Stock 7,154,997 7,326,426 Convertible promissory notes 1,998,528 1,929,769 Total 15,566,288 14,104,168 The Company has reserved its authorized but unissued common stock for possible future issuance in connection with the following: June 30, June30, 2016 2015 Exercise of stock warrants 3,783,002 2,191,487 Issuable shares for stock options and restricted shares 3,928,870 3,983,263 Conversion of preferred stock 8,088,330 8,259,759 Issuable shares from conversion of promissory notes payable 1,998,528 1,929,769 Total 17,798,730 16,364,278 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Text Block] | 13. Income Taxes As of June 30, 2016, the Company had approximately $27.6 million of the U.S domestic cumulative tax loss carryforwards and approximately $16.0 million of the foreign cumulative tax loss carryforwards, which may be available to reduce future income tax liabilities in certain jurisdictions. These U.S. and foreign tax loss carryforwards will expire beginning year 2028 through 2036 and year 2016 to year 2021, respectively. We have established a 100% valuation allowance against our net deferred tax assets due to our history of pre-tax losses and the likelihood that the deferred tax assets will not be realizable. The valuation allowance increased approximately $0.3 million and $1.5 million during the three and six months ended June 30, 2016, respectively. As of June 30, 2016, there are no unrecorded tax benefits which would impact our financial position or our results of operations. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Contingencies and Commitments [Text Block] | 14. Contingencies and Commitments (a) Severance Commitment The Company has employment agreements with certain employees that provide severance payments upon termination of employment under certain circumstances, as defined in the applicable agreements. As of June 30, 2016, the Company's potential minimum cash obligation to these employees was approximately $280,000. (b) Operating Lease Commitment The Company is committed to paying operating leases related to our offices in China through 2020 and thereafter as follows: Leased Property Years ending December 31, Costs 2016 (6 months) $ 315,000 2017 306,000 2018 311,000 2019 268,000 2020 206,000 Thereafter 88,000 Total $ 1,494,000 (c) Licensed Content Commitment The Company is committed to paying content costs through 2019 as follows: Years ending December 31, Content Costs 2016 (6 months) $ 3,830,000 2017 426,000 2018 226,000 2019 226,000 Total $ 4,708,000 (d) Lawsuits and Legal Proceedings From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. As of June 30, 2016, there are no such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results. (e) Acquisition of Property Commitment In consideration of the Company’s business expansion and rising rental costs, on February 2016, the Company entered into an agreement with Beijing Kuntin Taiming Investment Management Co., Ltd. for purchase of an office building. Total consideration for the property acquisition was approximately $4,239,000 (RMB27 million), which the Company has paid half in RMB in 2016 Q2 and is committed to paying the following through 2016 as follows: Years ending December 31, Property 2016 (6 months) 2,065,000 Total $ 2,065,000 (f) Advertising and Marketing Expense Commitment The Company is committed to paying advertising and marketing expense through 2016 as follows: Years ending December 31, Marketing expenses 2016 (6 months) 299,000 Total $ 299,000 (g) Investment commitment The Company entered into a Joint Venture Agreement (the “JV Agreement”) with Megtron Hong Kong Investment Group Co., Limited on May 30, 2016, pursuant to which the Company is committed to contribute $5.0 million to the Joint-Venture Company to be formed in installment. |
Concentration, Credit and Other
Concentration, Credit and Other Risks | 6 Months Ended |
Jun. 30, 2016 | |
Concentration, Credit and Other Risks [Text Block] | 15. Concentration, Credit and Other Risks (a) PRC Regulations The PRC market in which the Company operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability of the Company to conduct wireless telecommunication services through contractual arrangements in the PRC since the industry remains highly regulated. The Company conducts all of its operations in China through Zhong Hai Video, which the Company controls as a result of a series of contractual arrangements entered among YOD WFOE, Sinotop Beijing as the parent company of Zhong Hai Video, SSF and the respective legal shareholders of Sinotop Beijing and SSF. The Company believes that these contractual arrangements are in compliance with PRC law and are legally enforceable. If Sinotop Beijing, SSF or their respective legal shareholders fail to perform the obligations under the contractual arrangements or any dispute relating to these contracts remains unresolved, YOD WFOE or YOD HK can enforce its rights under the VIE contracts through PRC law and courts. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In particular, the interpretation and enforcement of these laws, rules and regulations involve uncertainties. If YOD WFOE had direct ownership of Sinotop Beijing and SSF, it would be able to exercise its rights as a shareholder to effect changes in the board of directors of Sinotop Beijing or SSF, which in turn could effect changes at the management level, subject to any applicable fiduciary obligations. However, under the current contractual arrangements, the Company relies on Sinotop Beijing, SSF and their respective legal shareholders to perform their contractual obligations to exercise effective control. The Company also gives no assurance that PRC government authorities will not take a view in the future that is contrary to the opinion of the Company. If the current ownership structure of the Company and its contractual arrangements with the VIEs and their equity holders were found to be in violation of any existing or future PRC laws or regulations, the Company's ability to conduct its business could be impacted and the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changes in the PRC laws which may result in deconsolidation of the VIEs. In addition, the telecommunications, information and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign owned entities, like YOD WFOE, may operate. The PRC government may issue from time to time new laws or new interpretations on existing laws to regulate areas such as telecommunications, information and media, some of which are not published on a timely basis or may have retroactive effect. For example, there is substantial uncertainty regarding the Draft Foreign Investment Law, including, among others, what the actual content of the law will be as well as the adoption and effective date of the final form of the law. Administrative and court proceedings in China may also be protracted, resulting in substantial costs and diversion of resources and management attention. While such uncertainty exists, the Company cannot assure that the new laws, when it is adopted and becomes effective, and potential related administrative proceedings will not have a material and adverse effect on the Company's ability to control the affiliated entities through the contractual arrangements. Regulatory risk also encompasses the interpretation by the tax authorities of current tax laws, and the Company’s legal structure and scope of operations in the PRC, which could be subject to further restrictions resulting in limitations on the Company’s ability to conduct business in the PRC. (b) Major Customers The Company relies on agreements with distribution partners, including digital cable operators, IPTV operators, OTT streaming operators and mobile smartphone manufacturers and operators, during the course of its business. A distribution partner that individually generates more than 10% of the Company’s revenue is considered a major customer. For the six months ended June 30, 2016, four customers individually accounted for 25%, 17%, 14%, and 12% of the Company’s revenue. Four customers individually accounted for 16%, 13%, 11% and 11% of the Company’s net accounts receivables as of June 30, 2016. For the six months ended June 30, 2015, three customers individually accounted for 19%, 18% and 12% of the Company’s revenue. Four customers individually accounted for 19%, 18%, 12% and 12% of the Company’s net accounts receivables as of June 30, 2015. (c) Major Suppliers The Company relies on agreements with studio content partners to acquire video contents. A content partner that accounts for more than 10% of the Company’s cost of revenues is considered a major supplier. For the six months ended June 30, 2016, four suppliers individually accounted for 31%, 24%, 19% and 13% of the Company’s cost of revenues. Two suppliers individually accounted for 83% and 10% of the Company’s accrued license content fees as of June 30, 2016. For the six months ended June 30, 2015, four suppliers individually accounted for 35%, 22%, 22% and 14% of the Company’s cost of revenues. Two suppliers individually accounted for 59% and 41% the Company’s accrued license content fee as of June 30, 2015. (d) Concentration of Credit Risks Financial instruments that potentially subject the Company to significant concentration of credit risk primarily consist of cash and accounts receivable. As of June 30, 2016 and 2015, the Company’s cash was held by financial institutions located in the PRC, Hong Kong and the United States that management believes have acceptable credit. Accounts receivable are typically unsecured and are mainly derived from revenues from the Company’s VOD content distribution partners. The risk with respect to accounts receivable is mitigated by regular credit evaluations that the Company performs on its distribution partners and its ongoing monitoring of outstanding balances. (e) Foreign Currency Risks A majority of the Company’s operating transactions are denominated in RMB and a significant portion of the Company’s assets and liabilities is denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes in the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by laws to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to complete the remittance. Cash consist of cash on hand and demand deposits at banks, which are unrestricted as to withdrawal. Demand deposits maintained at banks consist of the following: June 30, December 31, 2016 2015 RMB denominated bank deposits with financial institutions in the PRC $ 762,100 1,076,430 US dollar denominated bank deposits with financial institutions in the PRC $ 1,211,548 2,613,834 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 427,343 23,460 US dollar denominated bank deposits with financial institutions in The United States of America (“USA”) $ 1,766 53,231 US dollar denominated bank deposits with financial institutions in Cayman Islands (“Cayman”) $ 157 99 RMB restricted cash denominated bank deposits with financial institutions in the PRC $ - 2,994,364 As of June 30, 2016 and December 31, 2015 deposits of $291,003 and $241,807 were insured, respectively. To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, USA and Cayman with acceptable credit rating. |
Defined Contribution Plan
Defined Contribution Plan | 6 Months Ended |
Jun. 30, 2016 | |
Defined Contribution Plan [Text Block] | 16. Defined Contribution Plan During 2011, the Company began sponsoring a 401(k) defined contribution plan ("401(k) Plan") that provides for a 100% employer matching contribution of the first 3% and a 50% employer matching contribution of each additional percent contributed by an employee up to 5% of each employee’s pay. Employees become fully vested in employer matching contributions after six months of employment. Company 401(k) matching contributions were approximately $1,000 and $2,000 for the three and six months ended June 30, 2016 respectively and $5,000 and $6,000 for the three and six months ended June 30, 2015 respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Event [Text Block] | 17. Subsequent Event (a) On July 6, 2016, the Company entered into a Common Stock Purchase Agreement (the “SSW SPA”) with Seven Stars Works Co., Ltd., a Korea company (“SSW”) and an affiliate of SSS. Pursuant to the terms of the SSW SPA, the Company has agreed to sell and issue 2,272,727 shares of the Company’s common stock for $1.76 per share, or a total purchase price of $4.0 million to SSW. A total of $4.0 million was received on July 19, 2016. (b) On August 11, 2016, the Company entered into a Common Stock Purchase Agreement (the “Harvest SPA”) with Harvest Alternative Investment Opportunities SPC (“Harvest”), a Cayman Islands company. Pursuant to the terms of the Harvest SPA, the Company has agreed to sell and issue 2,272,727 shares of the Company’s Common Stock, for $1.76 per share, or a total purchase price of $4.0 million to Harvest. A total of $4.0 million was received on August 12, 2016. |
VIE Structure and Arrangements
VIE Structure and Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Statement of Financial Position [Table Text Block] | June 30, December 31, 2016 2015 ASSETS Current assets: Cash $ 736,240 $ 1,001,094 Accounts receivable, net 3,094,770 1,689,415 Licensed content, current 711,683 556,591 Prepaid expenses 219,242 98,893 Other current assets 130,810 133,582 Intercompany receivables due from the Company's subsidiaries (i) 157,676 161,017 Total current assets 5,050,421 3,640,592 Property and equipment, net 88,776 149,880 Licensed content, non-current 8,993 21,085 Intangible assets, net 200,098 253,771 Long term investments 3,118,445 450,115 Other non-current assets 59,355 58,026 Total assets $ 8,526,088 $ 4,573,469 LIABILITIES Current liabilities: Accounts payable $ 651,254 $ 44,867 Deferred revenue 1,232 15,080 Accrued expenses 390,176 280,038 Other current liabilities 361,908 298,422 Accrued salaries - 10,861 Accrued license content fees 1,518,112 933,532 Intercompany payables due to the Company's subsidiaries (i) 12,904,733 12,512,954 Total current liabilities 15,827,415 14,095,754 Total liabilities $ 15,827,415 $ 14,095,754 |
Statement of Operation [Table Text Block] | Six Months Ended June 30, June 30, 2016 2015 Revenue $ 2,750,190 $ 2,507,576 Net loss $ (671,644 ) $ (731,763 ) |
Statement of Cash Flow [Table Text Block] | Six Months Ended June 30, June 30, 2016 2015 Net cash used in operating activities $ (730,019 ) $ 329,740 Net cash used in investing activities $ (2,165,477 ) $ (64,002 ) Net cash provided by intercompany financing activities (i) $ 2,630,642 $ - |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property and Equipment [Table Text Block] | June 30, December 31, 2016 2015 Furniture and office equipment $ 919,685 $ 910,420 Leasehold improvements 190,722 190,722 Total property and equipment 1,110,407 1,101,142 Less: accumulated depreciation (1,016,818 ) (946,708 ) Property and Equipment, net $ 93,589 $ 154,434 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2016 December 31, 2015 Amortizing Intangible Gross Carrying Accumulated Net Gross Carrying Accumulated Net Assets Amount Amortization Balance Amount Amortization Balance Charter/ Cooperation agreements $ 2,755,821 (815,268 ) 1,940,553 $ 2,755,821 $ (746,372 ) $ 2,009,449 Software and licenses 284,233 (245,016 ) 39,217 253,930 (234,947 ) 18,983 Website and mobile app development 653,830 (456,987 ) 196,843 653,830 (403,961 ) 249,869 Workforce 305,693 (25,474 ) 280,219 - - - Total amortizing intangible assets $ 3,999,577 (1,542,745 ) 2,456,832 $ 3,663,581 $ (1,385,280 ) $ 2,278,301 Indefinite lived intangible assets Website name 134,290 - 134,290 134,290 - 134,290 Total intangible assets $ 4,133,867 (1,542,745 ) 2,591,122 $ 3,797,871 $ (1,385,280 ) $ 2,412,591 |
Amortization Expense [Table Text Block] | Amortization to be Years ending December 31, Recognized 2016 (6 months) $ 179,641 2017 346,769 2018 304,061 2019 168,079 2020 137,792 2021 137,792 Thereafter 1,182,698 Total amortization to be recognized $ 2,456,832 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value of the Warrant Liabilities [Table Text Block] | Black Scholes Monte Carlo June 30, December 31, 2016 2015 Risk-free interest rate 0.45% 0.92% Expected volatility 60% 60% Expected term 1.17 years 1.67 years Expected dividend yield 0% 0% | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | June 30, 2016 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Warrant liabilities (see Note 10) $ - $ - $ 251,611 $ 251,611 | December 31, 2015 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Warrant liabilities (see Note 10) $ - $ - $ 395,217 $ 395,217 |
Components Effecting Change in Fair Value [Table Text Block] | Level 3 Assets and Liabilities For the Six Months Ended June 30 , 2016 Change in January 1, Fair Value June 30, 2016 Settlements gain 2016 Liabilities: Warrant liabilities (see Note 10) $ 395,217 $ - $ (143,606 ) $ 251,611 | |
Monte Carlo Simulation Method [Member] | ||
Fair Value of the Warrant Liabilities [Table Text Block] | Monte Carlo March 28, 2016 Risk-free interest rate 0.89% Expected volatility 60% Expected term 2 years Expected dividend yield 0% |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share Based Payments Expense [Table Text Block] | Three Months Ended Six Months Ended June 30 June 30 June 30 June 30 2016 2015 2016 2015 Employees and directors share-based payments $ 73,000 $ 277,000 $ 212,000 $ 681,000 |
Stock Option Activity [Table Text Block] | Weighted Average Remaining Aggregated Options Weighted Average Contractual Life Intrinsic Outstanding Exercise Price (Years) Value Outstanding at January 1, 2016 1,734,429 $ 2.77 Granted - - Exercised - - Expired (25,897 ) 1.65 Forfeited (12,104 ) 1.65 Outstanding at June30, 2016 1,696,428 2.79 3.99 - Vested and expected to vest as of June 30, 2016 1,696,428 2.79 3.99 - Options exercisable at June 30, 2016 (vested) 1,684,707 2.80 3.97 - |
Warrants Outstanding [Table Text Block] | June 30, December 31, 2016 2015 Number of Number of Warrants Warrants Exercise Expiration Warrants Outstanding Outstanding Outstanding Price Date and Exercisable and Exercisable May 2011 Warner Brothers Warrants - 200,000 $ 6.60 05/11/16 2011 Service Agreement Warrants - 26,667 $ 7.20 06/15/16 2012 August Financing Warrants (i) 536,250 536,250 $ 1.50 08/30/17 2013 Broker Warrants (Series D Financing) 228,571 228,571 $ 1.75 07/05/18 2013 Broker Warrants (Convertible Note) 114,285 114,285 $ 1.75 11/04/18 2014 Broker Warrants (Series E Financing) 1,085,714 1,085,714 $ 1.75 01/31/19 1,964,820 2,191,487 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | June 30, June 30, 2016 2015 Warrants 3,783,002 2,191,487 Options 1,696,428 1,723,153 Series A Preferred Stock 933,333 933,333 Series E Preferred Stock 7,154,997 7,326,426 Convertible promissory notes 1,998,528 1,929,769 Total 15,566,288 14,104,168 |
Unissued Common Stock for Possible Future Issuance [Table Text Block] | June 30, June30, 2016 2015 Exercise of stock warrants 3,783,002 2,191,487 Issuable shares for stock options and restricted shares 3,928,870 3,983,263 Conversion of preferred stock 8,088,330 8,259,759 Issuable shares from conversion of promissory notes payable 1,998,528 1,929,769 Total 17,798,730 16,364,278 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Leased Property Costs [Table Text Block] | Leased Property Years ending December 31, Costs 2016 (6 months) $ 315,000 2017 306,000 2018 311,000 2019 268,000 2020 206,000 Thereafter 88,000 Total $ 1,494,000 |
Leased Content Commitment [Table Text Block] | Years ending December 31, Content Costs 2016 (6 months) $ 3,830,000 2017 426,000 2018 226,000 2019 226,000 Total $ 4,708,000 |
Acquisition of Property Commitment [Table Text Block] | Years ending December 31, Property 2016 (6 months) 2,065,000 Total $ 2,065,000 |
Advertising and Marketing Expenses [Table Text Block] | Years ending December 31, Marketing expenses 2016 (6 months) 299,000 Total $ 299,000 |
Concentration, Credit and Oth32
Concentration, Credit and Other Risks (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash, Cash Equivalents and Investments [Table Text Block] | June 30, December 31, 2016 2015 RMB denominated bank deposits with financial institutions in the PRC $ 762,100 1,076,430 US dollar denominated bank deposits with financial institutions in the PRC $ 1,211,548 2,613,834 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 427,343 23,460 US dollar denominated bank deposits with financial institutions in The United States of America (“USA”) $ 1,766 53,231 US dollar denominated bank deposits with financial institutions in Cayman Islands (“Cayman”) $ 157 99 RMB restricted cash denominated bank deposits with financial institutions in the PRC $ - 2,994,364 |
Going Concern and Management'33
Going Concern and Management's Plans (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Going Concern And Management's Plans 1 | $ 3,900,000 |
Going Concern And Management's Plans 2 | 4,200,000 |
Going Concern And Management's Plans 3 | 4,100,000 |
Going Concern And Management's Plans 4 | 3,900,000 |
Going Concern And Management's Plans 5 | 8,700,000 |
Going Concern And Management's Plans 5 | 90,200,000 |
Going Concern And Management's Plans 6 | 82,500,000 |
Going Concern And Management's Plans 7 | 10,000,000 |
Going Concern And Management's Plans 8 | 4,000,000 |
Going Concern And Management's Plans 9 | $ 4,000,000 |
VIE Structure and Arrangement34
VIE Structure and Arrangements (Narrative) (Details) - 6 months ended Jun. 30, 2016 ¥ in Thousands | USD ($)yr | CNY (¥)yr |
Vie Structure And Arrangements 1 | 100.00% | 100.00% |
Vie Structure And Arrangements 2 | 30.00% | 30.00% |
Vie Structure And Arrangements 3 | 100.00% | 100.00% |
Vie Structure And Arrangements 4 | yr | 20 | 20 |
Vie Structure And Arrangements 5 | ¥ 17,000 | |
Vie Structure And Arrangements 6 | $ | $ 2,600,000 | |
Vie Structure And Arrangements 7 | 99.00% | 99.00% |
Vie Structure And Arrangements 8 | 1.00% | 1.00% |
Vie Structure And Arrangements 9 | 20 | 20 |
Vie Structure And Arrangements 10 | 30.00% | 30.00% |
Vie Structure And Arrangements 11 | ¥ 19,800 | |
Vie Structure And Arrangements 12 | 200 | |
Vie Structure And Arrangements 13 | 17,800 | |
Vie Structure And Arrangements 14 | $ | $ 2,700,000 | |
Vie Structure And Arrangements 15 | $ | 0 | |
Vie Structure And Arrangements 16 | ¥ 17,800 | |
Vie Structure And Arrangements 17 | $ | $ 2,700,000 | |
Vie Structure And Arrangements 18 | 100.00% | 100.00% |
Vie Structure And Arrangements 19 | yr | 20 | 20 |
Vie Structure And Arrangements 20 | ¥ 50,000 | |
Vie Structure And Arrangements 21 | $ | $ 7,500,000 | |
Vie Structure And Arrangements 22 | ¥ 17,800 | |
Vie Structure And Arrangements 23 | $ | $ 2,800,000 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Property And Equipment 1 | $ 34,000 |
Property And Equipment 2 | 68,000 |
Property And Equipment 3 | 49,000 |
Property And Equipment 4 | $ 100,000 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)moshares | |
Intangible Assets 1 | $ 187,653 |
Intangible Assets 2 | shares | 66,500 |
Intangible Assets 3 | 10 |
Intangible Assets 4 | $ 3,655 |
Intangible Assets 5 | 30.00% |
Intangible Assets 6 | 20.00% |
Intangible Assets 7 | 50.00% |
Intangible Assets 8 | $ 59,295 |
Intangible Assets 9 | $ 37,530 |
Intangible Assets 5 | mo | 12 |
Intangible Assets 6 | $ 129,180 |
Intangible Assets 8 | 90,000 |
Intangible Assets 9 | 153,000 |
Intangible Assets 10 | 46,000 |
Intangible Assets 11 | $ 85,000 |
Long Term Investments (Narrativ
Long Term Investments (Narrative) (Details) - 6 months ended Jun. 30, 2016 $ / shares in Units, ¥ in Millions, $ in Millions | USD ($)$ / sharesshares | CNY (¥)shares |
Long Term Investments 1 | $ 2.7 | |
Long Term Investments 2 | ¥ | ¥ 18 | |
Long Term Investments 3 | $ 2.1 | |
Long Term Investments 3 | 13.00% | 13.00% |
Long Term Investments 4 | 13.00% | 13.00% |
Long Term Investments 5 | $ 2.7 | |
Long Term Investments 6 | shares | 8,566,271 | 8,566,271 |
Long Term Investments 7 | $ 3 | |
Long Term Investments 8 | 8,566,271 | 8,566,271 |
Long Term Investments 9 | 13.00% | 13.00% |
Long Term Investments 10 | $ / shares | $ 0.02548 | |
Long Term Investments 11 | $ / shares | $ 0.42467 | |
Long Term Investments 12 | $ 3 | |
Long Term Investments 13 | 30.00% | 30.00% |
Long Term Investments 14 | 39.00% | 39.00% |
Long Term Investments 15 | 0 | 0 |
Long Term Investments 16 | 0 | 0 |
Long Term Investments 17 | $ 0.4 | |
Long Term Investments 18 | $ 0.5 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value Measurements 1 | $ 672,727 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - 6 months ended Jun. 30, 2016 ¥ in Millions | USD ($)yr | CNY (¥)yr |
Related Party Transactions 1 | $ 3,000,000 | |
Related Party Transactions 2 | $ 3,000,000 | |
Related Party Transactions 3 | 4.00% | 4.00% |
Related Party Transactions 4 | yr | 365 | 365 |
Related Party Transactions 5 | $ 1.75 | |
Related Party Transactions 6 | 2,126,000 | |
Related Party Transactions 7 | 1.75 | |
Related Party Transactions 8 | 30,000 | |
Related Party Transactions 9 | 60,000 | |
Related Party Transactions 10 | 30,000 | |
Related Party Transactions 11 | $ 60,000 | |
Related Party Transactions 12 | 5.00% | 5.00% |
Related Party Transactions 13 | 0 | 0 |
Related Party Transactions 14 | 0 | 0 |
Related Party Transactions 15 | 0 | 0 |
Related Party Transactions 16 | $ 182,000 | |
Related Party Transactions 17 | 91,000 | |
Related Party Transactions 18 | 37,000 | |
Related Party Transactions 19 | 56,000 | |
Related Party Transactions 20 | 93,000 | |
Related Party Transactions 21 | 80,000 | |
Related Party Transactions 22 | 112,000 | |
Related Party Transactions 23 | $ 2,700,000 | |
Related Party Transactions 24 | ¥ | ¥ 18 |
SSS Agreements (Narrative) (Det
SSS Agreements (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Sss Agreements 1 | shares | 4,545,455 |
Sss Agreements 2 | $ / shares | $ 2.20 |
Sss Agreements 3 | $ 10,000,000 |
Sss Agreements 4 | shares | 1,818,182 |
Sss Agreements 5 | $ / shares | $ 2.75 |
Sss Agreements 6 | 19.99% |
Sss Agreements 7 | $ 10,000,000 |
Sss Agreements 8 | 443,000 |
Sss Agreements 9 | 8,227,000 |
Sss Agreements 10 | 673,000 |
Sss Agreements 11 | 722,000 |
Sss Agreements 12 | 29,100,000 |
Sss Agreements 13 | $ 17,718,000 |
Sss Agreements 14 | 0.56% |
Sss Agreements 15 | 19.99% |
Sss Agreements 16 | shares | 9,208,860 |
Sss Agreements 17 | $ 131,000 |
Sss Agreements 18 | 115,000 |
Sss Agreements 19 | 122,000 |
Sss Agreements 20 | $ 1.91 |
Sss Agreements 21 | shares | 9,208,860 |
Sss Agreements 22 | shares | 9,208,860 |
Sss Agreements 24 | $ 9,000 |
Sss Agreements 25 | $ 24,000 |
Sss Agreements 26 | 100.00% |
Sss Agreements 27 | 5,000,000 |
Sss Agreements 28 | 50,000,000 |
Sss Agreements 29 | $ 4,000,000 |
Sss Agreements 30 | 100,000,000 |
Sss Agreements 31 | $ 6,000,000 |
Sss Agreements 32 | 150,000,000 |
Sss Agreements 33 | $ 8,000,000 |
Sss Agreements 34 | 5,000,000 |
Sss Agreements 34 | 100.00% |
Sss Agreements 35 | 99.00% |
Sss Agreements 36 | 1.00% |
Sss Agreements 37 | 19.99% |
Sss Agreements 37 | 0 |
Warrant Liabilities (Narrative)
Warrant Liabilities (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Warrant Liabilities 1 | shares | 977,063 |
Warrant Liabilities 2 | shares | 440,813 |
Warrant Liabilities 2 | $ 1,525,000 |
Warrant Liabilities 3 | 252,000 |
Warrant Liabilities 4 | 395,000 |
Warrant Liabilities 5 | $ 143,000 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)yrshares | |
Share-based Payments 1 | shares | 1,696,428 |
Share-based Payments 2 | shares | 1,964,820 |
Share-based Payments 3 | shares | 4,000,000 |
Share-based Payments 4 | shares | 1,694,467 |
Share-based Payments 5 | $ | $ 15,000 |
Share-based Payments 6 | yr | 1.17 |
Share-based Payments 7 | $ | $ 9,000 |
Share-based Payments 8 | $ | 251,000 |
Share-based Payments 9 | $ | $ 1.86 |
Share-based Payments 10 | yr | 2.12 |
Share-based Payments 11 | 200,000 |
Share-based Payments 12 | 26,667 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes 1 | $ 27.6 |
Income Taxes 2 | $ 16 |
Income Taxes 3 | 100.00% |
Income Taxes 4 | $ 0.3 |
Income Taxes 5 | $ 1.5 |
Contingencies and Commitments44
Contingencies and Commitments (Narrative) (Details) - 6 months ended Jun. 30, 2016 ¥ in Millions | USD ($) | CNY (¥) |
Contingencies And Commitments 1 | $ 280,000 | |
Contingencies And Commitments 2 | 4,239,000 | |
Contingencies And Commitments 3 | ¥ | ¥ 27 | |
Contingencies and Commitments 4 | $ 5,000,000 |
Concentration, Credit and Oth45
Concentration, Credit and Other Risks (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Concentration, Credit And Other Risks 1 | 10.00% |
Concentration, Credit And Other Risks 2 | 25.00% |
Concentration, Credit And Other Risks 3 | 17.00% |
Concentration, Credit And Other Risks 4 | 14.00% |
Concentration, Credit And Other Risks 5 | 12.00% |
Concentration, Credit And Other Risks 6 | 16.00% |
Concentration, Credit And Other Risks 7 | 13.00% |
Concentration, Credit And Other Risks 8 | 11.00% |
Concentration, Credit And Other Risks 9 | 11.00% |
Concentration, Credit And Other Risks 10 | 19.00% |
Concentration, Credit And Other Risks 11 | 18.00% |
Concentration, Credit And Other Risks 12 | 12.00% |
Concentration, Credit And Other Risks 13 | 19.00% |
Concentration, Credit And Other Risks 14 | 18.00% |
Concentration, Credit And Other Risks 15 | 12.00% |
Concentration, Credit And Other Risks 16 | 12.00% |
Concentration, Credit And Other Risks 17 | 10.00% |
Concentration, Credit And Other Risks 18 | 31.00% |
Concentration, Credit And Other Risks 19 | 24.00% |
Concentration, Credit And Other Risks 20 | 19.00% |
Concentration, Credit And Other Risks 21 | 13.00% |
Concentration, Credit And Other Risks 22 | 83.00% |
Concentration, Credit And Other Risks 24 | 10.00% |
Concentration, Credit And Other Risks 25 | 35.00% |
Concentration, Credit And Other Risks 26 | 22.00% |
Concentration, Credit And Other Risks 27 | 22.00% |
Concentration, Credit And Other Risks 28 | 14.00% |
Concentration, Credit And Other Risks 29 | 59.00% |
Concentration, Credit And Other Risks 30 | 41.00% |
Concentration, Credit And Other Risks 31 | $ 291,003 |
Concentration, Credit And Other Risks 32 | $ 241,807 |
Defined Contribution Plan (Narr
Defined Contribution Plan (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Defined Contribution Plan 1 | 100.00% |
Defined Contribution Plan 2 | 3.00% |
Defined Contribution Plan 3 | 50.00% |
Defined Contribution Plan 4 | 5.00% |
Defined Contribution Plan 5 | $ 1,000 |
Defined Contribution Plan 6 | 2,000 |
Defined Contribution Plan 7 | 5,000 |
Defined Contribution Plan 8 | $ 6,000 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Subsequent Event 1 | shares | 2,272,727 |
Subsequent Event 2 | $ / shares | $ 1.76 |
Subsequent Event 3 | $ 4 |
Subsequent Event 4 | $ 4 |
Subsequent Event 5 | shares | 2,272,727 |
Subsequent Event 6 | $ / shares | $ 1.76 |
Subsequent Event 7 | $ 4 |
Subsequent Event 8 | $ 4 |
Statement of Financial Position
Statement of Financial Position (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Vie Structure And Arrangements Statement Of Financial Position 1 | $ 736,240 |
Vie Structure And Arrangements Statement Of Financial Position 2 | 1,001,094 |
Vie Structure And Arrangements Statement Of Financial Position 3 | 3,094,770 |
Vie Structure And Arrangements Statement Of Financial Position 4 | 1,689,415 |
Vie Structure And Arrangements Statement Of Financial Position 5 | 711,683 |
Vie Structure And Arrangements Statement Of Financial Position 6 | 556,591 |
Vie Structure And Arrangements Statement Of Financial Position 7 | 219,242 |
Vie Structure And Arrangements Statement Of Financial Position 8 | 98,893 |
Vie Structure And Arrangements Statement Of Financial Position 9 | 130,810 |
Vie Structure And Arrangements Statement Of Financial Position 10 | 133,582 |
Vie Structure And Arrangements Statement Of Financial Position 11 | 157,676 |
Vie Structure And Arrangements Statement Of Financial Position 12 | 161,017 |
Vie Structure And Arrangements Statement Of Financial Position 13 | 5,050,421 |
Vie Structure And Arrangements Statement Of Financial Position 14 | 3,640,592 |
Vie Structure And Arrangements Statement Of Financial Position 15 | 88,776 |
Vie Structure And Arrangements Statement Of Financial Position 16 | 149,880 |
Vie Structure And Arrangements Statement Of Financial Position 17 | 8,993 |
Vie Structure And Arrangements Statement Of Financial Position 18 | 21,085 |
Vie Structure And Arrangements Statement Of Financial Position 19 | 200,098 |
Vie Structure And Arrangements Statement Of Financial Position 20 | 253,771 |
Vie Structure And Arrangements Statement Of Financial Position 21 | 3,118,445 |
Vie Structure And Arrangements Statement Of Financial Position 22 | 450,115 |
Vie Structure And Arrangements Statement Of Financial Position 23 | 59,355 |
Vie Structure And Arrangements Statement Of Financial Position 24 | 58,026 |
Vie Structure And Arrangements Statement Of Financial Position 25 | 8,526,088 |
Vie Structure And Arrangements Statement Of Financial Position 26 | 4,573,469 |
Vie Structure And Arrangements Statement Of Financial Position 27 | 651,254 |
Vie Structure And Arrangements Statement Of Financial Position 28 | 44,867 |
Vie Structure And Arrangements Statement Of Financial Position 29 | 1,232 |
Vie Structure And Arrangements Statement Of Financial Position 30 | 15,080 |
Vie Structure And Arrangements Statement Of Financial Position 31 | 390,176 |
Vie Structure And Arrangements Statement Of Financial Position 32 | 280,038 |
Vie Structure And Arrangements Statement Of Financial Position 33 | 361,908 |
Vie Structure And Arrangements Statement Of Financial Position 34 | 298,422 |
Vie Structure And Arrangements Statement Of Financial Position 35 | 0 |
Vie Structure And Arrangements Statement Of Financial Position 36 | 10,861 |
Vie Structure And Arrangements Statement Of Financial Position 37 | 1,518,112 |
Vie Structure And Arrangements Statement Of Financial Position 38 | 933,532 |
Vie Structure And Arrangements Statement Of Financial Position 39 | 12,904,733 |
Vie Structure And Arrangements Statement Of Financial Position 40 | 12,512,954 |
Vie Structure And Arrangements Statement Of Financial Position 41 | 15,827,415 |
Vie Structure And Arrangements Statement Of Financial Position 42 | 14,095,754 |
Vie Structure And Arrangements Statement Of Financial Position 43 | 15,827,415 |
Vie Structure And Arrangements Statement Of Financial Position 44 | $ 14,095,754 |
Statement of Operation (Details
Statement of Operation (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Vie Structure And Arrangements Statement Of Operation 1 | $ 2,750,190 |
Vie Structure And Arrangements Statement Of Operation 2 | 2,507,576 |
Vie Structure And Arrangements Statement Of Operation 3 | (671,644) |
Vie Structure And Arrangements Statement Of Operation 4 | $ (731,763) |
Statement of Cash Flow (Details
Statement of Cash Flow (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Vie Structure And Arrangements Statement Of Cash Flow 1 | $ (730,019) |
Vie Structure And Arrangements Statement Of Cash Flow 2 | 329,740 |
Vie Structure And Arrangements Statement Of Cash Flow 3 | (2,165,477) |
Vie Structure And Arrangements Statement Of Cash Flow 4 | (64,002) |
Vie Structure And Arrangements Statement Of Cash Flow 5 | 2,630,642 |
Vie Structure And Arrangements Statement Of Cash Flow 6 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Property And Equipment Property And Equipment 1 | $ 919,685 |
Property And Equipment Property And Equipment 2 | 910,420 |
Property And Equipment Property And Equipment 3 | 190,722 |
Property And Equipment Property And Equipment 4 | 190,722 |
Property And Equipment Property And Equipment 5 | 1,110,407 |
Property And Equipment Property And Equipment 6 | 1,101,142 |
Property And Equipment Property And Equipment 7 | (1,016,818) |
Property And Equipment Property And Equipment 8 | (946,708) |
Property And Equipment Property And Equipment 9 | 93,589 |
Property And Equipment Property And Equipment 10 | $ 154,434 |
Schedule of Intangible Assets a
Schedule of Intangible Assets and Goodwill (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Intangible Assets Schedule Of Intangible Assets And Goodwill 1 | $ 2,755,821 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 2 | (815,268) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 3 | 1,940,553 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 4 | 2,755,821 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 5 | (746,372) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 6 | 2,009,449 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 7 | 284,233 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 8 | (245,016) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 9 | 39,217 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 10 | 253,930 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 11 | (234,947) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 12 | 18,983 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 13 | 653,830 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 14 | (456,987) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 15 | 196,843 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 16 | 653,830 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 17 | (403,961) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 18 | 249,869 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 19 | 305,693 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 20 | (25,474) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 21 | 280,219 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 22 | 0 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 23 | 0 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 24 | 0 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 25 | 3,999,577 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 26 | (1,542,745) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 27 | 2,456,832 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 28 | 3,663,581 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 29 | (1,385,280) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 30 | 2,278,301 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 31 | 134,290 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 32 | 0 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 33 | 134,290 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 34 | 134,290 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 35 | 0 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 36 | 134,290 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 37 | 4,133,867 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 38 | (1,542,745) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 39 | 2,591,122 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 40 | 3,797,871 |
Intangible Assets Schedule Of Intangible Assets And Goodwill 41 | (1,385,280) |
Intangible Assets Schedule Of Intangible Assets And Goodwill 42 | $ 2,412,591 |
Amortization Expense (Details)
Amortization Expense (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Intangible Assets Amortization Expense 1 | $ 179,641 |
Intangible Assets Amortization Expense 2 | 346,769 |
Intangible Assets Amortization Expense 3 | 304,061 |
Intangible Assets Amortization Expense 4 | 168,079 |
Intangible Assets Amortization Expense 5 | 137,792 |
Intangible Assets Amortization Expense 6 | 137,792 |
Intangible Assets Amortization Expense 7 | 1,182,698 |
Intangible Assets Amortization Expense 8 | $ 2,456,832 |
Fair Value of the Warrant Liabi
Fair Value of the Warrant Liabilities (Details) | 6 Months Ended |
Jun. 30, 2016yr | |
Fair Value Measurements Fair Value Of The Warrant Liabilities 1 | 0.45% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 2 | 0.92% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 3 | 60.00% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 4 | 60.00% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 5 | 1.17 |
Fair Value Measurements Fair Value Of The Warrant Liabilities 6 | 1.67 |
Fair Value Measurements Fair Value Of The Warrant Liabilities 7 | 0.00% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 8 | 0.00% |
Monte Carlo Simulation Method [Member] | |
Fair Value Measurements Fair Value Of The Warrant Liabilities 1 | 0.89% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 2 | 60.00% |
Fair Value Measurements Fair Value Of The Warrant Liabilities 3 | 2 |
Fair Value Measurements Fair Value Of The Warrant Liabilities 4 | 0.00% |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 1 | $ 0 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 2 | 0 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 3 | 251,611 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 4 | $ 251,611 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 1 | $ 0 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 2 | 0 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 3 | 395,217 | |
Fair Value Measurements Assets And Liabilities Measured At Fair Value On A Recurring Basis 4 | $ 395,217 |
Components Effecting Change in
Components Effecting Change in Fair Value (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value Measurements Components Effecting Change In Fair Value 1 | $ 395,217 |
Fair Value Measurements Components Effecting Change In Fair Value 2 | 0 |
Fair Value Measurements Components Effecting Change In Fair Value 3 | (143,606) |
Fair Value Measurements Components Effecting Change In Fair Value 4 | $ 251,611 |
Share Based Payments Expense (D
Share Based Payments Expense (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Share-based Payments Share Based Payments Expense 1 | $ 73,000 |
Share-based Payments Share Based Payments Expense 2 | 277,000 |
Share-based Payments Share Based Payments Expense 3 | 212,000 |
Share-based Payments Share Based Payments Expense 4 | $ 681,000 |
Stock Option Activity (Details)
Stock Option Activity (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Share-based Payments Stock Option Activity 1 | $ 1,734,429 |
Share-based Payments Stock Option Activity 2 | 2.77 |
Share-based Payments Stock Option Activity 3 | $ 0 |
Share-based Payments Stock Option Activity 4 | 0 |
Share-based Payments Stock Option Activity 5 | 0 |
Share-based Payments Stock Option Activity 6 | 0 |
Share-based Payments Stock Option Activity 7 | $ (25,897) |
Share-based Payments Stock Option Activity 8 | 1.65 |
Share-based Payments Stock Option Activity 9 | $ (12,104) |
Share-based Payments Stock Option Activity 10 | 1.65 |
Share-based Payments Stock Option Activity 11 | $ 1,696,428 |
Share-based Payments Stock Option Activity 12 | 2.79 |
Share-based Payments Stock Option Activity 13 | 3.99 |
Share-based Payments Stock Option Activity 14 | $ 0 |
Share-based Payments Stock Option Activity 15 | $ 1,696,428 |
Share-based Payments Stock Option Activity 16 | 2.79 |
Share-based Payments Stock Option Activity 17 | 3.99 |
Share-based Payments Stock Option Activity 18 | $ 0 |
Share-based Payments Stock Option Activity 19 | $ 1,684,707 |
Share-based Payments Stock Option Activity 20 | 2.80 |
Share-based Payments Stock Option Activity 21 | 3.97 |
Share-based Payments Stock Option Activity 22 | $ 0 |
Warrants Outstanding (Details)
Warrants Outstanding (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Share-based Payments Warrants Outstanding 1 | $ 0 |
Share-based Payments Warrants Outstanding 2 | $ 200,000 |
Share-based Payments Warrants Outstanding 3 | 6.60 |
Share-based Payments Warrants Outstanding 4 | $ 0 |
Share-based Payments Warrants Outstanding 5 | $ 26,667 |
Share-based Payments Warrants Outstanding 6 | 7.20 |
Share-based Payments Warrants Outstanding 7 | $ 536,250 |
Share-based Payments Warrants Outstanding 8 | $ 536,250 |
Share-based Payments Warrants Outstanding 9 | 1.50 |
Share-based Payments Warrants Outstanding 10 | $ 228,571 |
Share-based Payments Warrants Outstanding 11 | $ 228,571 |
Share-based Payments Warrants Outstanding 12 | 1.75 |
Share-based Payments Warrants Outstanding 13 | $ 114,285 |
Share-based Payments Warrants Outstanding 14 | $ 114,285 |
Share-based Payments Warrants Outstanding 15 | 1.75 |
Share-based Payments Warrants Outstanding 16 | $ 1,085,714 |
Share-based Payments Warrants Outstanding 17 | $ 1,085,714 |
Share-based Payments Warrants Outstanding 18 | 1.75 |
Share-based Payments Warrants Outstanding 19 | $ 1,964,820 |
Share-based Payments Warrants Outstanding 20 | $ 2,191,487 |
Antidilutive Securities Exclude
Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 1 | $ 3,783,002 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 2 | 2,191,487 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 3 | 1,696,428 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 4 | 1,723,153 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 5 | 933,333 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 6 | 933,333 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 7 | 7,154,997 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 8 | 7,326,426 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 9 | 1,998,528 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 10 | 1,929,769 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 11 | 15,566,288 |
Net Loss Per Common Share Antidilutive Securities Excluded From Computation Of Earnings Per Share 12 | $ 14,104,168 |
Unissued Common Stock for Possi
Unissued Common Stock for Possible Future Issuance (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 1 | $ 3,783,002 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 2 | 2,191,487 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 3 | 3,928,870 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 4 | 3,983,263 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 5 | 8,088,330 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 6 | 8,259,759 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 7 | 1,998,528 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 8 | 1,929,769 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 9 | 17,798,730 |
Net Loss Per Common Share Unissued Common Stock For Possible Future Issuance 10 | $ 16,364,278 |
Leased Property Costs (Details)
Leased Property Costs (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Contingencies And Commitments Leased Property Costs 1 | $ 315,000 |
Contingencies And Commitments Leased Property Costs 2 | 306,000 |
Contingencies And Commitments Leased Property Costs 3 | 311,000 |
Contingencies And Commitments Leased Property Costs 4 | 268,000 |
Contingencies And Commitments Leased Property Costs 5 | 206,000 |
Contingencies And Commitments Leased Property Costs 6 | 88,000 |
Contingencies And Commitments Leased Property Costs 7 | $ 1,494,000 |
Leased Content Commitment (Deta
Leased Content Commitment (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Contingencies And Commitments Leased Content Commitment 1 | $ 3,830,000 |
Contingencies And Commitments Leased Content Commitment 2 | 426,000 |
Contingencies And Commitments Leased Content Commitment 3 | 226,000 |
Contingencies And Commitments Leased Content Commitment 4 | 226,000 |
Contingencies And Commitments Leased Content Commitment 5 | $ 4,708,000 |
Acquisition of Property Commitm
Acquisition of Property Commitment (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Contingencies And Commitments Acquisition Of Property Commitment 1 | $ 2,065,000 |
Contingencies And Commitments Acquisition Of Property Commitment 2 | $ 2,065,000 |
Advertising and Marketing Expen
Advertising and Marketing Expenses (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Contingencies And Commitments Advertising And Marketing Expenses 1 | $ 299,000 |
Contingencies And Commitments Advertising And Marketing Expenses 2 | $ 299,000 |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 1 | $ 762,100 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 2 | 1,076,430 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 3 | 1,211,548 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 4 | 2,613,834 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 5 | 427,343 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 6 | 23,460 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 7 | 1,766 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 8 | 53,231 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 9 | 157 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 10 | 99 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 11 | 0 |
Concentration, Credit And Other Risks Cash, Cash Equivalents And Investments 12 | $ 2,994,364 |