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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

 


UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Six Months Ended 
   June 30, 2017   June 30, 2016 
         
Cash flows from operating activities:          
Net loss  $(2,078,979)  $(3,880,489)
Adjustments to reconcile net loss to net cash used in operating activities          
Share-based compensation expense   147,652    211,840 
Provision for doubtful accounts   103,043    - 
Depreciation and amortization   257,153    220,806 
Income tax benefit   -    (17,224)
Equity in  loss of equity method investees   76,836    37,349 
Loss on disposal of assets   679,091    - 
Change in fair value of warrant liabilities   243,999    (143,606)
Foreign currency exchange losses   -    (153,334)
Impairment of intangible assets   63,621    - 
Amortization of debt issuance costs   -    122,696 
           
Change in assets and liabilities:          
Accounts receivable   (33,765,572)   (1,405,355)
Licensed content   759,698    (143,000)
Prepaid expenses and other assets   3,713,053    (116,540)
Accounts payable   29,200,687    605,466 
Accrued expenses, salary and other current liabilities   (209,478)   (6,084)
Deferred revenue   (626,396)   (13,848)
Accrued license content fees   -    584,580 
Net cash used in operating activities   (1,435,592)   (4,096,743)
           
Cash flows from investing activities:          
Acquisition of property and equipment   (38,326)   (2,070,672)
Proceeds from disposal of property and equipment   743    - 
Disposal of Zhong Hai Shi Xun, net of cash disposed   (115,060)   - 
Cash paid for the acquisition of SVG   (693,187)   - 
Investments in intangibles   -    (2,163,872)
Investment in long term investments   -    (3,000,000)
Net cash used in investing activities   (845,830)   (7,234,544)
           
Cash flows from financing activities          
Proceeds from private placement   1,866,301    - 
Repayment of amounts due to related parties   (215,951)   - 
Proceeds from issuance of warrant and shares   -    10,000,000 
Net cash provided by financing activities   1,650,350    10,000,000 
Effect of exchange rate changes on cash   32,728    (33,849)
Net increase (decrease) in cash   (598,344)   (1,365,136)
           
Cash at beginning of period   3,761,814    3,768,897 
           
Cash at end of period  $3,163,470   $2,403,761 
           
Supplemental Cash Flow Information:          
           
Exchange of Series E Preferred Stock for common stock  $7,155   $100 
Issuance of convertible note for licensed content (Note 12)  $-   $17,717,847 
Issuance of shares for the settlement of liability  $-   $75,000 
Issuance of shares upon conversion of convertible note, including accrued interest and debt issuance cost  $-   $17,733,297 
Acquisition of long term investment through transfer of Game IP rights  $-   $2,714,441 
Payable for Game IP rights acquired  $-   $603,209 
Payable for workforce acquired  $-   $131,358 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

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