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SEC Filings

10-Q
SEVEN STARS CLOUD GROUP, INC. filed this Form 10-Q on 11/13/2017
Entire Document
 

  

Seven Stars Cloud Group, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Nine Months Ended 
   September 30, 2017   September 30, 2016 
         
Cash flows from operating activities:          
Net loss  $(5,100,853)  $(6,033,572)
Adjustments to reconcile net loss to net cash used in operating activities          
Share-based compensation expense   202,501    286,577 
Provision for doubtful accounts   103,040    366,887 
Depreciation and amortization   293,661    344,308 
Amortization of debt issuance costs   -    122,696 
Income tax benefit   -    (25,836)
Equity in  loss of equity method investees   100,468    19,862 
Loss on disposal of assets   683,195    - 
Change in fair value of warrant liabilities   112,642    (201,826)
Impairment of long-lived assets   216,468    172,064 
Foreign currency exchange losses   -    3,431 
           
Change in assets and liabilities:          
Accounts receivable   (34,582,490)   (2,890,663)
Inventory   (159,240)   - 
Licensed content   759,698    (639,225)
Prepaid expenses and other assets   3,679,359    (799)
Accounts payable   29,792,542    177,354 
Accrued expenses, salary and other current liabilities   (798,209)   250,856 
Deferred revenue   (1,139,357)   (10,359)
Accrued license content fees   -    112,896 
Net cash used in operating activities   (5,836,575)   (7,945,349)
           
Cash flows from investing activities:          
Acquisition of property and equipment   (46,260)   (3,130,862)
Acquisition of leasehold improvements   -    (455,723)
Proceeds from disposal of property and equipment   2,450,044    - 
Disposal of subsidiary, net of cash disposed   (8,753)   - 
Cash paid for the acquisition of subsidiaries   (741,433)   (650,000)
Investments in intangibles   -    (2,811,346)
Investment in long term investments   (250,000)   (3,584,025)
Net cash provided by (used in) investing activities   1,403,598    (10,631,956)
           
Cash flows from financing activities          
Proceeds from private placement   2,529,344    - 
Repayment of amounts due to related parties   (243,503)   - 
Costs associated with financing activities   -    (294,890)
Proceeds from issuance of warrant and shares   -    18,000,000 
Net cash provided by financing activities   2,285,841    17,705,110 
Effect of exchange rate changes on cash   62,078    (57,416)
Net increase (decrease) in cash   (2,085,058)   (929,611)
           
Cash at beginning of period   3,761,814    3,768,897 
           
Cash at end of period  $1,676,756   $2,839,286 

 

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 
Payment of interest  $250,000   $- 
Acquisition of long term investment through transfer of Game IP rights  $-   $2,714,441 
Payable for Game IP rights acquired  $-   $93,828 
Payable for workforce acquired  $-   $121,695 

 

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

 

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