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SEC Filings

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

 

Consolidated Results of Operations

 

Comparison of Three Months Ended June 30, 2017 and 2016

 

   Three Months Ended         
   June 30, 2017   June 30, 2016   Amount Change   % Change 
Revenue  $43,324,439   $1,480,464   $41,843,975    2,826%
Cost of revenue   43,272,723    800,399    42,472,324    5,306%
Gross profit   51,716    680,065    (628,349)   (92%)
                     
Operating expense:                    
Selling, general and administrative expenses expenses   2,875,440    1,808,906    1,066,534    59%
Professional fees   747,418    270,491    476,927    176%
Impairment of other intangible assets   63,621    -    63,621    100%
Depreciation and amortization   60,942    123,343    (62,401)   (51%)
                     
Total operating expense   3,747,421    2,202,740    1,544,681    70%
                     
Loss from operations   (3,695,705)   (1,522,675)   (2,173,030)   143%
Interest expense, net   (3,696)   (166,710)   163,014    (98%)
Change in fair value of warrant liabilities   26,117    106,583    (80,466)   (75%)
Equity in loss of equity method investees   (33,090)   (27,001)   (6,089)   23%
Others   (11,072)   (5,258)   (5,814)   111%
                     
Loss before income taxes   (3,717,446)   (1,615,061)   (2,102,385)   130%
                     
Income tax benefit   -    8,612    (8,612)   (100%)
                     
Net loss   

(3,717,446

)   (1,606,449)   

(2,110,997

)   131%
                     
Net loss attributable to non-controlling interest   57,221    18,360    38,861    212%
                     
Net loss attributable to Seven Stars Cloud Group, Inc. shareholders  $

(3,660,225

)  $(1,588,089)  $(2,072,136)   130%

 

Revenues

 

We are refocusing from our legacy operations as a premium content VOD service provider in China and aiming to be a leading Intelligent Industrial Internet company with solutions designed to provide operational efficiencies in today’s constantly evolving business landscape. With a focus on “BASE” or Blockchain, Artificial Intelligence, Supply Chain & Exchanges, we are organized into three cloud-based categories and business units: Brand, Content & Intellectual Property Cloud, Product Sales Cloud, and the Transactional Finance Product Cloud. With the three clouds functioning both independently and interdependently, we are creating a vertical, transactional and flexible platform for today’s global enterprises, including:

 

1>OTT, Mobile App, IPTV and Digital Cable VOD Businesses (Legacy YOD)

Provides premium content and integrated value-added service solutions for the delivery of VOD and paid video programming to digital cable providers, Internet Protocol Television (“IPTV”) providers. The core revenues are being generated from both minimum guarantee payments and revenue sharing arrangements with distribution partners as well as subscription or transactional fees from subscribers.

 

2>Wecast Services

On January 30, 2017, the Company completed the acquisition of Sun Video Group HK Limited ("SVG"), which has a 51% ownership stake in Shanghai Wecast Supply Chain Management Limited ("Wecast SH"). On January 31, 2017, the Company acquired 55% of the

 

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