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SEC Filings

10-Q
SEVEN STARS CLOUD GROUP, INC. filed this Form 10-Q on 08/14/2017
Entire Document
 

 

Seven Stars Cloud Group, Inc., Its Subsidiaries and Variable Interest Entities
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

15.Loss Per Common Share

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30,   June 30,   June 30, 
   2017   2016   2017   2016 
Net loss attributable to common stockholders  $(3,660,225)  $(1,588,089)  $(1,447,346)  $(3,724,560)
Basic                    
Basic weighted average shares outstanding   61,180,365    29,197,899    58,297,202    26,851,888 
                     
Diluted                    
Diluted weighted average common shares outstanding   61,180,365    29,197,899    58,297,202    26,851,888 
                     
Net loss per share:                    
Basic  $(0.06)  $(0.05)  $(0.02)  $(0.14)
Diluted  $(0.06)  $(0.05)  $(0.02)  $(0.14)

 

Basic loss per common share attributable to Seven Stars Cloud shareholders is calculated by dividing the net loss attributable to Seven Stars Cloud shareholders by the weighted average number of outstanding common shares during the applicable period.

 

Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted loss per share for the three and six months ended June 30, 2017 and 2016 both equal to basic loss per share for respective periods because the effect of securities convertible into common shares is anti-dilutive.

 

The following table includes the number of shares that may be dilutive potential common shares in the future. These shares were not included in the computation of diluted loss per share because the effect was either antidilutive or the performance condition was not met.

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30,   June 30,   June 30, 
   2017   2016   2017   2016 
Warrants   3,546,897    3,783,002    3,546,897    3,783,002 
Options   2,462,863    1,696,428    2,462,863    1,696,428 
Series A Preferred Stock   933,333    933,333    933,333    933,333 
Series E Preferred Stock   -    7,154,997    -    7,154,997 
Convertible promissory note and interest   35,745,070    1,998,528    35,745,070    1,998,528 
Total   42,688,163    15,566,288    42,688,163    15,566,288 

 

16.Income Taxes

 

As of June 30, 2017, the Company had approximately $29.9 million of the U.S domestic cumulative tax loss carryforwards and approximately $16.5 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 2018 to year 2022, respectively.

 

The income tax expense for the six months ended June 30, 2017 is nil because of net operating loss and deferred tax assets related to the net operating loss carryovers utilized had been offset by a valuations allowance. Company had established a 100% valuation allowance against its net deferred tax assets due to its history of pre-tax losses and the likelihood that the deferred tax assets will not be realized. The valuation allowance was decreased approximately $0.3 million during the six months ended June 30, 2017.

 

As of June 30, 2017, there are no unrecorded tax benefits which would impact our financial position or our results of operations.

 

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