10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-35561

WECAST NETWORK, INC.

(Exact name of registrant as specified in its charter)

Nevada	20-1778374
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Building B4, Tai Ming International Business Court,

Tai Hu Town, Tongzhou District, Beijing, China 101116

(Address of principal executive offices)

212-206-1216

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ¨      No x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x      No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “larger accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer                    ¨
Non-accelerated filer   ¨	Smaller reporting company x

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨      No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 61,189,047 shares as of May 9, 2017. 

QUARTERLY REPORT ON FORM 10-Q

OF WECAST NETWORK, INC.

FOR THE PERIOD ENDED MARCH 31, 2017

TABLE OF CONTENTS

PART I	-FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II	-OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	39
Item 6.	Exhibits	39
Signatures		40

References

Except as otherwise indicated by the context, references in this report to (i) the “Company,” “Wecast Network,” “we,” “us,” and “our” are to Wecast Network, Inc. (formerly known as YOU On Demand Holdings, Inc.), a Nevada corporation, and its consolidated subsidiaries and variable interest entities; (ii) “CB Cayman” refers to our wholly-owned subsidiary China Broadband, Ltd., a Cayman Islands company; (iii) “YOD Hong Kong” refers to YOU On Demand (Asia) Limited (formerly known as Sinotop Group Limited), a Hong Kong company wholly-owned by CB Cayman; (iv) “YOD WFOE” refers to YOU On Demand (Beijing) Technology Co., Ltd., a PRC company wholly-owned by YOD Hong Kong; (v) “Sinotop Beijing” or “Sinotop” refers to Beijing Sino Top Scope Technology Co., Ltd, a PRC company controlled by YOD Hong Kong through contractual arrangements; (vi) “Zhong Hai Media” refers to Zhong Hai Shi Xun Media Co., Ltd., a PRC company 80% owned by Sinotop Beijing; (vii) “SSF” refers to Tianjin Sevenstarflix Network Technology Limited, a PRC company controlled by YOD Hong Kong through contractual arrangements; (viii) “Hua Cheng” refers to Hua Cheng Hu Dong (Beijing) Film and Television Communication Co., Ltd., a PRC company 39% owned by Sinotop Beijing and 20% owner of Zhong Hai Media; (ix) “Wecast Services” refers to our wholly-owned subsidiary Wecast Services Limited (formerly known as Sun Video Group Hong Kong Limited) a Hong Kong company; (x) “Wide Angle” refers to Wide Angle Group Limited, a Hong Kong company 55% owned by the Company; (xi) “Wecast SH” refers to Shanghai Wecast Supply Chain Management Limited, a PRC company 51% owned by the Company; (xii) “SEC” refers to the United States Securities and Exchange Commission; (xiii) “Securities Act” refers to Securities Act of 1933, as amended; (xiv) “Exchange Act” refers to the Securities Exchange Act of 1934, as amended; (xv) “PRC” and “China” refer to People’s Republic of China; (xvi) “Renminbi” and “RMB” refer to the legal currency of China; (xvii) “U.S. dollar,” “$” and “US$” refer to United States dollars; and (xviii) “VIEs” refers to our current variable interest entities, Sinotop Beijing, and Tianjin Sevenstarflix Network Technology Limited. 

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

WECAST NETWORK, INC., ITS SUBSIDIARIES AND VARIABLE INTEREST ENTITIES

INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2017

	Page
Unaudited Consolidated Balance Sheets	4
Unaudited Consolidated Statements of Operations	5
Unaudited Consolidated Statements of Comprehensive Income (Loss)	6
Unaudited Consolidated Statements of Cash Flows	7
Unaudited Consolidated Statements of Equity	8
Notes to Unaudited Consolidated Financial Statements	10

3

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED BALANCE SHEETS

	March 31, 2017			December 31, 2016
				(As adjusted*)
ASSETS
Current assets:
Cash	$	1,054,142		$	3,761,814
Accounts receivable, net		29,196,591			9,522,151
Licensed content, current		883,015			124,319
Notes receivable		421,475			1,749,830
Inventory		217,383			203,697
Prepaid expenses		347,968			375,944
Other current assets		6,925,012			3,581,822
Total current assets		39,045,586			19,319,577
Property and equipment, net		4,760,976			4,963,725
Licensed content, non-current		16,075,134			17,593,528
Intangible assets, net		425,113			453,242
Goodwill		6,648,911			6,648,911
Long term investments		6,635,483			6,654,664
Other non-current assets		57,846			112,643
Total assets	$	73,649,049		$	55,746,290
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
Current liabilities: (including amounts of the consolidated VIEs without recourse to Wecast Network, Inc. See note 3)
Accounts payable	$	27,231,787		$	13,341,680
Deferred revenue		609,466			1,350,054
Accrued interest due to a related party		587,688			557,918
Accrued other expenses		1,415,774			708,987
Accrued salaries		807,952			766,957
Payable for purchase of building		992,000			987,015
Amount due to related parties		2,173,891			-
Other current liabilities		331,719			1,995,297
Accrued license content fees		1,189,453			1,236,661
Convertible promissory note due to a related party		3,000,000			3,000,000
Warrant liabilities		340,901			70,785
Total current liabilities		38,680,631			24,015,354
Total liabilities	$	38,680,631			24,015,354
Commitments and contingencies (Note 17)
Convertible redeemable preferred stock:
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of March 31, 2017 and December 31, 2016, respectively		1,261,995			1,261,995
Equity:
Series E Preferred Stock - $0.001 par value; 16,500,000 shares authorized, 1,216,904 and 7,154,997 shares issued and outstanding, liquidation preference of  $2,129,586 and $12,521,245 as of March 31, 2017 and December 31, 2016, respectively		1,217			7,155
Common stock - $0.001 par value; 1,500,000,000 shares authorized,  59,891,201 and 53,918,523 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively		59,891			53,918
Additional paid-in capital		152,836,057			152,755,919
Accumulated deficit		(113,456,389	)		(115,669,268	)
Accumulated other comprehensive loss		(3,282	)		(1,353,302	)
Total Wecast Network shareholders’ equity		39,437,494			35,794,422
Non-controlling interest		(5,731,071	)		(5,325,481	)
Total equity		33,706,423			30,468,941
Total liabilities, convertible redeemable preferred stock and equity	$	73,649,049		$	55,746,290

*The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited (“BT”) on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 “Acquisition”)

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

4

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended
	March 31, 2017			March 31, 2016
Revenue	$	33,164,351		$	1,269,726
Cost of revenue		29,342,379			915,780
Gross profit		3,821,972			353,946
Operating expenses:
Selling, general and administrative expense		1,265,172			2,165,053
Professional fees		267,133			367,446
Depreciation and amortization		196,211			97,463
Total operating expense		1,728,516			2,629,962
Income (loss) from operations		2,093,456			(2,276,016	)
Interest and other income (expense)
Interest expense		(41,557	)		(33,473	)
Change in fair value of warrant liabilities		(270,116	)		37,023
Equity in loss of equity method investees		(43,746	)		(10,348	)
Other		(99,570	)		162
Income (loss) before income taxes		1,638,467			(2,282,652	)
Income tax benefit		-			8,612
Net income (loss)		1,638,467			(2,274,040	)
Net loss attributable to non-controlling interest		(574,412	)		(137,569	)
Net income (loss) attributable to Wecast Network, Inc. shareholders	$	2,212,879		$	(2,136,471	)
Basic earnings (loss) per share	$	0.04		$	(0.09	)
Diluted earnings (loss) per share	$	0.04		$	(0.09	)
Weighted average shares outstanding:
Diluted		60,715,721			24,484,562
Basic		55,382,002			24,484,562

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

5

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended
	March 31, 2017			March 31, 2016
Net income (loss)	$	1,638,467		$	(2,274,040	)
Other comprehensive income (loss), net of nil tax
Foreign currency translation adjustments		1,518,842			13,132
Comprehensive income (loss)		3,157,309			(2,260,908	)
Comprehensive loss attributable to non-controlling interest		(405,590	)		(142,956)
Comprehensive income (loss) attributable to Wecast Network, Inc. shareholders	$	3,562,899		$	(2,117,952	)

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

6

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	March 31, 2017			March 31, 2016
Cash flows from operating activities:
Net income (loss)	$	1,638,467		$	(2,274,040	)
Adjustments to reconcile net loss to net cash used in operating activities
Share-based compensation expense		71,428			138,770
Depreciation and amortization		196,211			97,463
Income tax benefit		-			(8,612	)
Equity in loss of equity method investees		43,746			10,348
Loss on disposal of assets		40,139			-
Change in fair value of warrant liabilities		270,116			(37,023	)
Foreign currency exchange losses		-			10,590
Change in assets and liabilities:
Accounts receivable		(19,674,440	)		(1,153,595	)
Licensed content		1,518,394			263,913
Prepaid expenses and other assets		(1,932,566	)		140,391
Accounts payable		13,890,107			237
Accrued expenses, salary and other current liabilities		(881,051	)		691,914
Amount due to related parties		2,173,891			-
Deferred revenue		(740,588	)		(15,080	)
Accrued license content fees		-			402,508
Net cash used in operating activities		(3,386,146	)		(1,732,216	)
Cash flows from investing activities:
Acquisition of and deposit for property and equipment		(5,473	)		-
Net cash used in investing activities		(5,473	)		-
Cash flows from financing activities
Proceeds from issuance of warrant and shares		8,745			10,000,000
Net cash provided by financing activities		8,745			10,000,000
Effect of exchange rate changes on cash		675,202			(1,361	)
Net increase (decrease) in cash		(2,707,672	)		8,266,423
Cash at beginning of period		3,761,814			3,768,897
Cash at end of period	$	1,054,142		$	12,035,320
Supplemental Cash Flow Information:
Issuance of convertible note for licensed content (Note 12)	$	-		$	17,717,847
Payable for purchase of building	$	992,000		$	-
Issuance of shares for the settlement of liability	$	-		$	75,000

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

7

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities

UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2016

	Series E Preferred Stock		Series E Par Value		Common Stock		Par Value		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Wecast Network , Inc. Shareholders' Equity			Non- controlling Interest			Total Equity
Balance, January 1, 2016		7,254,997	$	7,255		24,249,109	$	24,249	$	97,512,542		$	(86,457,840	)	$	(414,910	)	$	10,671,296		$	(2,388,031	)	$	8,283,265
Share-based compensation		-		-		25,000		25		88,745			-			-			88,770			-			88,770
Common stock issuance		-		-		4,545,455		4,545		9,273,029			-			-			9,277,574			-			9,277,574
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		-		-		-		-		(442,500	)		-			-			(442,500	)		-			(442,500	)
Common stock issued for settlement of liability		-		-		41,780		42		74,958			-			-			75,000			-			75,000
Net loss		-		-		-		-		-			(2,136,471	)		-			(2,136,471	)		(137,569	)		(2,274,040	)
Foreign currency translation adjustments, net of nil tax		-		-		-		-		-			-			18,519			18,519			(5,387	)		13,132
Balance, March 31, 2016		7,254,997	$	7,255		28,861,344	$	28,861	$	107,229,200		$	(88,594,311	)	$	(396,391	)	$	18,274,614		$	(2,530,987	)	$	15,743,627

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

8

Wecast Network, Inc., Its Subsidiaries and Variable Interest Entities
UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2017

	Series E Preferred Stock			Series E Par Value			Common Stock		Par Value		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Wecast Network Shareholders' Equity		Non- controlling Interest			Total Equity
Balance, January 1, 2017 (As adjusted*)		7,154,997		$	7,155			53,918,523	$	53,918	$	152,755,919		$	(115,669,268	)	$	(1,353,302	)	$	35,794,422	$	(5,325,481	)	$	30,468,941
Share-based compensation		-			-			-		-		71,428			-			-			71,428		-			71,428
Common stock issuance		-			-			29,585		30		(30	)		-			-			-		-			-
Common stock issued for warrant exercised		-			-			5,000		5		8,740			-			-			8,745		-			8,745
Common stock issued from conversion of series E preferred stock		(5,938,093	)		(5,938	)		5,938,093		5,938		-			-			-			-		-			-
Net profit (loss)		-			-			-		-		-			2,212,879			-			2,212,879		(574,412	)		1,638,467
Foreign currency translation adjustments, net of nil tax		-			-			-		-		-			-			1,350,020			1,350,020		168,822			1,518,842
Balance, March 31, 2017		1,216,904		$	1,217			59,891,201	$	59,891	$	152,836,057		$	(113,456,389	)	$	(3,282	)	$	39,437,494	$	(5,731,071	)	$	33,706,423

 *The above consolidated statements of equity present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 “Acquisition”)

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

9

1. Organization and Principal Activities

Wecast Network, Inc. (the “Company”), formerly known as 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 Wecast Network (“Wecast Network”, “we”, “us”, or “the Company”).

Wecast Network is leveraging its legacy operations as a premium content Video On Demand (“VOD”) service provider in China and aiming to be the leading provider of total B2B business solutions for today’s constantly evolving business landscape. With a focus on “BASE” or Blockchain, Artificial Intelligence, Supply Chain & Exchanges, Wecast is organized into three cloud-based categories and business units: Brand IP Cloud, Product Sales Cloud, and the Financial Product Cloud. With the three clouds functioning both independently and interdependently, Wecast is creating a vertical, transactional and flexible platform for today’s global enterprises.

The Company’s mission and vision is to be the world’s leading cloud-based, total B2B enterprise solution and platform provider that empowers businesses to grow with Big Data technology.

Wecast Network launched its legacy VOD service through acquisition of YOD Hong Kong, formerly Sinotop Group Limited, in July 30, 2010 through its subsidiary China CB Cayman. Through a series of contractual arrangements, YOD WFOE, the subsidiary of YOD Hong Kong, controls Sinotop Beijing, a corporation established in the PRC. Sinotop Beijing is the 80% owner of Zhong Hai Media, through which we provide: 1) integrated value-added business-to-business (“B2B”) service solutions for the delivery of VOD and enhanced premium content for digital cable; 2) integrated value-added business-to-business-to-customer (“B2B2C”) service solutions for the delivery of VOD and enhanced premium content for IPTV and OTT providers and; 3) a direct to user, or B2C, mobile video service app. As a result of the contractual arrangements with Sinotop Beijing, we have the right to control management decisions and direct the economic activities that most significantly impact Sinotop Beijing and Zhong Hai Media, and accordingly, under generally accepted accounting principles in the United States (“U.S. GAAP”), we consolidate these operating entities in our consolidated financial statements.

On October 8, 2016, the Company signed an agreement with Zhejiang Yanhua (“Yanhua Agreement”), where Zhejiang Yanhua (“Yanhua”) will act as the exclusive distribution operator (within the territory of the People’ Republic of China) of Wecast Network’s licensed library of major studio films. According to the Yanhua Agreement, the existing legacy Hollywood studio paid contents as well as other IP contents specified in the agreement, along with the corresponding authorized rights letter that Wecast Network is entitled to, will be turned over to Yanhua as a whole package, which was agreed to be priced at RMB13,000,000. In addition to the above-mentioned minimal guarantee fee of RMB13,000,000 specified, there is a provision in the Yanhua Agreement which states that once the revenue recognized from the existing contents transferred from Wecast Network to Yanhua reaches the amount of RMB13,000,000, the revenue above RMB13,000,000 will be shared with Wecast Network from the date when this revenue threshold is reached based on certain revenue-sharing mechanism stipulated in the Yanhua Agreement.

On January 30, 2017, Company entered into a Securities Purchase Agreement (the “Sun Video SPA”) with BT Capital Global Limited which has been controlled by Company’s chairman Bruno Wu, for the purchase by us of all of the outstanding capital stock of Sun Video Group Hong Kong Limited. On January 31, 2017, Company entered into another Securities Purchase Agreement (the “Wide Angle SPA”) with BT and Sun Seven Stars Media Group Limited, one of the Company’s largest shareholders, controlled by Mr. Wu, as guarantor, for the purchase by us of 55% of the outstanding capital stock of Wide Angle Group Limited (“Wide Angle”). Details of these two acquisitions are in Note 4. After acquiring these two entities, other than Company’s legacy YOD business, Company is also engaged with consumer electronics and smart hand held device design and supply chain management business.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statements of the financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016, 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, 2016 filed with the Securities and Exchange Commission on March 31, 2017 (“2016 Annual Report”).

2. Going Concern and Management’s Plans

For the three months ended March 31, 2017 and 2016, the Company incurred net income of approximately $1.6 million and net loss of $2.3 million, respectively, and cash used in operations was approximately $3.4 million and $1.7 million, respectively. Further, the Company had accumulated deficit of approximately $113.5 million and $115.7 million as of March 31, 2017 and December 31, 2016, respectively, due to recurring losses since the inception of its business.

10

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. In addition, the Company completed three common stock financings with Seven Star Works Co. Ltd. (“SSW”) for $4.0 million on July 19, 2016, with Harvest Alternative Investment Opportunities SPC (“Harvest”) for $4.0 million on August 12, 2016, and with Sun Seven Stars Hong Kong Cultural Development Limited (“SSSHK”) for $2.0 million on November 17, 2016, respectively. 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.

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 Media, 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 Media 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 former legal shareholder of Sinotop Beijing (the spouse of our then-CEO). In January 2016, in connection with the appointment of 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, the former Vice President of Beijing Sun Seven Stars Culture Development Limited (“SSS”), (2) the Company terminated the series of contractual arrangements with Zhang Yan, and (3) the Company entered into new contractual agreements with Bing Wu and Yun Zhu (collectively, the “Former Sinotop VIE Agreements”). In October 2016, in accordance with our rights under contractual agreements, (1) the legal ownership of Sinotop Beijing was transferred from Bing Wu to Mei Chen, the former CFO of our Company, (2) the Company terminated the series of contractual arrangements with Bing Wu, and (3) the Company entered into new contractual agreements with Mei Chen (collectively, the “New Sinotop VIE Agreements”). Although the Former Sinotop VIE Agreements and 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 Former Sinotop VIE Agreements and New Sinotop VIE Agreements and the Company remained the primary beneficiary of Sinotop Beijing after the signing of the former Sinotop VIE Agreements and 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, Mei Chen 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.

11

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 Mei Chen 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 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:

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(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 Media that can be used only to settle obligations of Sinotop Beijing or Zhong Hai Media, except for the registered capital of these two entities amounting to RMB 21.8 million (approximately $3.3 million) as of March 31, 2017. As Sinotop Beijing and Zhong Hai Media 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 12(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.

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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 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 RMB 19.8 million and RMB 0.2 million, respectively, to the Nominee Shareholders for the purpose of establishing SSF and for development of its business. As of December 31, 2016, RMB 27.6 million (US $4.2 million) and RMB nil have been lent to Lan Yang and Yun Zhu, respectively. Lan Yang has contributed all of the RMB 27.6 million (US $4.2 million) in the form of capital contribution. 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. The loan extended to the Nominee Shareholders and the capital of SSF are fully eliminated in the consolidated financial statements.

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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 RMB 50.0 million (approximately $7.5 million), among which RMB 27.6 million (approximately $4.2 million) has been injected as of March 31, 2017. 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.

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Financial Information

The following financial information of our VIEs, as applicable for the periods presented, affected the Company's consolidated financial statements. 

	March 31,		December 31,
	2017		2016
ASSETS
Current assets:
Cash	$	385,911	$	1,519,125
Accounts receivable, net		1,186,291		1,260,529
Prepaid expenses		62,881		30,455
Other current assets		1,798,108		191,427
Intercompany receivables due from the Company's subsidiaries(i)		896,512		150,725
Total current assets		4,329,703		3,152,261
Property and equipment, net		206,106		196,677
Intangible assets, net		2,312		2,570
Long term investments		4,984,167		3,654,664
Other non-current assets		57,846		442,782
Total assets	$	9,580,134	$	7,448,954
LIABILITIES
Current liabilities:
Accounts payable	$	1,191,076	$	5,817
Deferred revenue		3,522		824,563
Accrued expenses		248,226		268,074
Other current liabilities		413,327		394,314
Accrued license content fees		1,189,453		1,236,661
Intercompany payables due to the Company's subsidiaries(i)		14,793,082		14,752,338
Total current liabilities		17,838,686		17,481,767
Total liabilities	$	17,838,686	$	17,481,767

	Three Months Ended
	March 31,		March 31,
	2017		2016
Revenue	$	787,328	$	1,269,726
Net income (loss)	$	258,760	$	(479,887	)

	Three Months Ended
	March 31,		March 31,
	2017		2016
Net cash used in operating activities	$	(1,322,729)	$	(603,884	)
Net cash used in investing activities	$	-	$	-
Net cash provided by financing activities(i)	$	189,515	$	21,855

(i) Intercompany receivables and payables are eliminated upon consolidation. The intercompany financing activities include the capital injection of $0.29 million to Sinotop Beijing in the three months period ended March 31, 2017.

The revenue producing assets that are held by the VIEs and a VIE’s subsidiary primarily comprise of licensed content, network equipment, software and licenses and website. 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.

4. Acquisition

On January 30, 2017, we entered into a Securities Purchase Agreement (the “Sun Video SPA”) with BT Capital Global Limited, a Hong Kong company (“BT”) which has been controlled by Company’s chairman Bruno Wu, for the purchase by us of all of the outstanding capital stock of Sun Video Group Hong Kong Limited, a Hong Kong corporation (“SVG”) for an aggregate purchase price of $800,000 and a $50 million Promissory Note (the “SVG Note”) with the principal and interest thereon convertible into shares of the Company’s common stock at a conversion rate of $1.50 per share. BT has guaranteed that SVG will achieve certain financial goals within 12 months of the closing. Until receipt of necessary shareholder approvals, the SVG Note is not convertible into shares of our common stock, but once the necessary shareholder approval is received, the unpaid principal and interest thereon will automatically convert. Under the terms of the Sun Video SPA, BT has guaranteed that the business of the SVG and its subsidiaries (the “Sun Video Business”) shall achieve revenue of $250 million and $15 million of gross profit (collectively the “Performance Guarantees”) within 12 months of the closing. If the Sun Video Business fails to meet either of the Performance Guarantees within such time, BT shall forfeit back to us the shares of our common stock or SVG Note, on a pro rata basis based on the Performance Guarantee for which the Sun Video Business achieves the lowest percentage of the respective amount guaranteed.

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In addition, if the Sun Video Business achieves more than $50 million in cumulative net income within 3 years of closing, (the “Net Income Threshold”), we shall pay BT 50% of the amount of any cumulative net income above the Net Income Threshold. Profit share payments shall be made on an annual basis, in either cash or stock at the discretion of our Board of Directors. If the Board decides to make the payment in stock, the number of our shares of common stock to be awarded shall be calculated based on the market price of such shares.

After the acquisition SVG changed its name to Wecast Services Limited, and is therefore also referred to herein as Wecast Services.

On January 31, 2017, we entered into a Securities Purchase Agreement (the “Wide Angle SPA”) with BT and Sun Seven Stars Media Group Limited, a Hong Kong company (“SSS”), one of the Company’s largest shareholders, controlled by our chairman Bruno Wu, as guarantor, for the purchase by us of 55% of the outstanding capital stock of Wide Angle for the sole consideration of the Company adding Wide Angle to the Sun Video Business acquired by the Company under the Sun Video SPA and thereby including the revenue and gross profit from Wide Angle in the calculation of the SVG Performance Guarantees set forth in the Sun Video SPA.

Since the Company, Wecast Services and Wide Angle were controlled by our chairman Bruno Wu since November 10, 2016, as well as both before and after the acquisition, this transaction was accounted for as a business combination between entities under common control by Mr. Wu. Therefore, in accordance with ASC Subtopic 805-50, the consolidated financial statements of the Company include the acquired assets and liabilities of the SVG and Wide Angle at their historical carrying amounts. In addition, the Company’s consolidated financial statements as of December 31, 2016 have been prepared as if the Wecast Services and Wide Angle had been owned by the Company since November 10, 2016 presented and the Company’s consolidated financial statements as of December 31, 2016 has been retrospectively adjusted accordingly.

As of March 31, 2017, the Company recorded SVG note in $50 million as Company’s additional paid in capital as Company believed that Performance Guarantees would be met within 12 months of the closing, but Net Income Threshold might probably not be met within 3 years of closing. Considering the proceeds transferred was larger than carrying amounts of the net assets received, such $50 million was then recognized as reduction to Company’s additional paid in capital.

5. Accounts Receivable

Accounts receivable is consisted of the following:

	March 31,			December 31,
	2017			2016
Accounts receivable, gross:	$	32,040,818		$	12,350,947
Less: allowance for doubtful accounts		(2,844,227	)		(2,828,796	)
Accounts receivable, net	$	29,196,591		$	9,522,151

The movement of the allowance for doubtful accounts is as follows:

	March 31, 2017			December 31, 2016
Balance at the beginning of the period	$	(2,828,796	)	$	(3,672	)
Additions charged to bad debt expense		(15,431	)		(2,825,124	)
Write-off of bad debt allowance		-			-
Balance at the end of the period	$	(2,844,227	)	$	(2,828,796	)

6. Property and Equipment

The following is a breakdown of the Company’s property and equipment:

	March 31,			December 31,
	2017			2016
Furniture and office equipment	$	1,070,443		$	1,061,762
Vehicle		144,544			267,022
Office Building		3,969,632			3,948,058
Leasehold improvements		702,634			760,931
Total property and equipment		5,887,253			6,037,773
Less: accumulated depreciation		(1,126,277	)		(1,074,048	)
Property and Equipment, net	$	4,760,976		$	4,963,725

The Company recorded depreciation expense of approximately $168,082 and $34,000 for the three months ended March 31, 2017 and 2016 respectively.

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7. Intangible Assets

As of March 31, 2017 and December 31, 2016, the Company’s amortizing and indefinite lived intangible assets consisted of the following:

	March 31, 2017										December 31, 2016
Amortizing Intangible	Gross Carrying		Accumulated			Impairment			Net		Gross Carrying		Accumulated			Impairment			Net
Assets	Amount		Amortization			Loss			Balance		Amount		Amortization			Loss			Balance
Charter/ Cooperation agreements (iii)	$	2,755,821		(909,257	)		(1,846,564	)		-	$	2,755,821	$	(909,257	)	$	(1,846,564	)	$	-
Software and licenses		267,991		(244,585	)		-			23,406		267,991		(241,932	)		-			26,059
Patent and trademark		92,965		(39,943	)		-			53,022		92,965		(39,943	)		-			53,022
Website and mobile app development (ii)		593,193		(421,129	)		(172,064	)		-		593,193		(421,129	)		(172,064	)		-
Workforce (i)		305,694		(101,898	)		-			203,796		305,694		(76,422	)		-			229,272
Total amortizing intangible assets	$	4,015,664		(1,716,812	)		(2,018,628	)		280,224	$	4,015,664	$	(1,688,683	)	$	(2,018,628	)	$	308,353
Indefinite lived intangible assets																				-
Website name		134,290		-			-			134,290		134,290		-			-			134,290
Patent		10,599		-			-			10,599		10,599		-			-			10,599
Total intangible assets	$	4,160,553		(1,716,812	)		(2,018,622	)		425,113	$	4,160,553	$	(1,688,683	)	$	(2,018,628	)	$	453,242

(i) On April 1, 2016, Wecast Network entered into an agreement with Mr. Liu Changsheng, under which Wecast Network agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with a six month restriction period and a fair value of $121,695 in exchange for a workforce of 10 personnel experienced in programing content mobile apps. All 10 personnel enter into three year employment contracts with Wecast Network effective from April 1, 2016. The Company also acquired certain laptop and desktop computers with fair value of $3,655. According to the agreement, 30% of the cash consideration is due upon the signing of the agreement, 20% is due 2 months after the signing of the agreement and 50% is due 6 months after the signing of the agreement. Cash consideration of $93,825 has been paid as of March 31, 2017, and $93,828 was paid on October 31, 2016. If any of three key staff, as defined, terminated their employment with Wecast Network during the first 12 months of employment, Wecast Network 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. Wecast Network has accounted for the transaction as an asset acquisition in which Wecast Network 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.

The Company recorded amortization expense related to our amortizing intangible assets of approximately $28,129 and $63,000 for the three months ended March 31, 2017 and March 31, 2016 respectively, which included the amortization expense of the workforce acquired as stated above.

(ii) Considering a new mobile app has been developed to be put into market in October, 2016, the Company determined that the future cash flows generated from the old mobile app was nil. In accordance with ASC 350, Intangibles – Goodwill and Other, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. The Company estimated the fair value of this intangible asset to be nil as of March 31, 2017 and December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from mobile app development of $172,000 was recognized in 2016 to write off the entire book value of the old mobile app.

(iii) During the fourth quarter of 2016, the Company determined that the Charter/Cooperation agreements will not serve the business or generate future cash flow. As no future cash flows will be generated from the Charter/Cooperation agreements, the Company estimated the fair value of the Charter/Cooperation agreements to be nil as of December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from Charter/Cooperation agreements of $1,846,000 was recognized in 2016 to write off the entire book value of the Charter/Cooperation agreements.

.

The following table outlines the amortization expense for the next five years and thereafter:

	Amortization to be
Years ending December 31,	Recognized
2017(9 months)		90,277
2018		118,254
2019		35,794
2020 and thereafter		35,899
Total amortization to be recognized	$	280,224

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8. Long Term Investments

Cost method investments

Cost method investments  as of the period ended March 31, 2017 and December 31, 2016 are as follow:

	March 31,		December 31,
	2017		2016
Topsgame (i)	$	3,174,235	$	3,156,985
Frequency (ii)		3,000,000		3,000,000
Total	$	6,174,235	$	6,156,985

(i) Investment in Topsgame

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. 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 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, based on the acquisition cost of Game IP Rights of approximately $2.7 million and accounts for the investment by the cost method.

On September 14, 2016, SSF increased its investment in Topsgame by RMB 3,900,000 (approximately $584,000) and maintained its 13% equity ownership of Topsgame. The investment continued to be accounted for using the cost method..

(ii) 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 million. The 8,566,271 Series A Preferred Stock represent 9% 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 accounts for the investment by the cost method.

There were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of our cost method investments, accordingly the fair value of our cost method investments are not estimated.

Equity method investments

Equity method investment movement for the three months ended on March 31, 2017 is as follow:

	March 31, 2017
		December 31, 2016		Capital increase		Gain/(Loss) on investment			Impairment loss			Foreign currency translation adjustments		March 31, 2017
Wecast Internet	(i)		132,782		-		(37,382	)		-			3,804		99,204
Hua Cheng	(ii)		364,897		-		(6,364	)		(38,448	)		41,959		362,044
Shandong Media	(iii)		-		-		-			-			-		-
Total			497,679		-		(43,746	)		(38,448	)		45,763		461,248

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(i) Investment in Wecast Internet

In October 2016, the Company’s subsidiary, YOU On Demand (Asia) Ltd., invested RMB 1,000,000 (approximately $149,750) in Wecast Internet Limited (“Wecast Internet”) and held its 50% equity ownership.

(ii) Investment in Hua Cheng

As of the period ended March 31, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity method.

(iii) Investment in Shandong Media

As of the period ended March 31, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the equity method. The investment was fully impaired as of March 31, 2017 and December 31, 2016.

9. Stockholders’ Equity

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 and 2,272,727 shares were issued on July 19, 2016.

On August 11, 2016, the Company entered into 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 and 2,272,727 shares were issued on August 12, 2016.

On November 11, 2016, the Company entered into Common Stock Purchase Agreement (the “SSSHKCD SPA”) with Sun Seven Stars Hong Kong Cultural Development Limited, a Hong Kong company (“SSSHKCD”) and an affiliate of SSS. Pursuant to the terms of the SSSHKCD SPA, the Company has agreed to sell and issue 1,136,3654 shares of the Company’s common stock for $1.76 per share, or a total purchase price of $2.0 million to SSSHKCD. A total of $2.0 million was received and 1,136,365 shares were issued on November 17, 2016.

As described in Note 12, the Company and SSS entered into a series of agreements, including an agreement pursuant to which the Company agreed to sell and issue 4,545,455 shares of the Company's common stock and warrants to acquire an additional 1,818,182 shares (at an exercise price of $2.75 per share) for an aggregate purchase price of $10 million to SSS.

10. 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.

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The Company reviews 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 March 31, 2017 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, 2016. The following assumptions were incorporated:

	Black Scholes			Monte Carlo
	March 31,			December 31,
	2017			2016
Risk-free interest rate		0.91	%		0.70	%
Expected volatility		55	%		55	%
Expected term		0.42  year			0.67 year
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 as of March 31, 2017 and December 31, 2016, respectively:

	March 31, 2017
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	340,901	$	340,901

	December 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	70,785	$	70,785

The table below reflects the components effecting the change in fair value for the three months ended March 31, 2017:

	Level 3 Assets and Liabilities
	For the Three  Months Ended March 31 , 2017
	January 1,				Change in		March 31,
	2017		Settlements		Fair Value		2017
Liabilities:
Warrant liabilities (see Note 13)	$	70,785	$	-	$	270,116	$	340,901

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, notes receivable, accounts payable, accrued other expenses, other current liabilities payables and convertible promissory note as of March 31, 2017 and December 31, 2016, approximate fair value because of the short maturity of these instruments.

11. Related Party Transactions

(a) $3.0 Million Convertible Note 

On May 10, 2012, the Executive Chairman and Principal Executive Officer, 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 Amendment No. 4 to 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 Series E Preferred Stock at its intrinsic value, which was 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, we recognized a beneficial conversion feature of approximately $2,126,000 in 2014 which was reflected as interest expense and additional paid-in capital since the note was payable upon demand.

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Effective December 30, 2014, the Company and Mr. McMahon entered into Amendment No. 5 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.

On December 31, 2016, the Company and Mr. McMahon entered into an amendment pursuant to which the Note will be at Mr. McMahon’s option, payable on demand or convertible on demand into shares of the Company’s Series E Preferred Stock, provided that the Note will no longer be convertible into Series E Preferred Stock upon the conversion of the Series E Preferred stock owned by C Media into the Company’s Common Stock (pursuant to which all Series E Preferred Stock will be automatically converted) but then convertible only into Common Stock at a conversion price of $1.50, until December 31, 2018.

For the three months ended March 31, 2017 and 2016, the Company recorded interest expense of $30,000 and $30,000 related to the Note.

(b) Cost of revenue

Hua Cheng, the minority shareholder of Zhong Hai Media, charged Company licensed content fees of approximately nil and $56,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and December 31, 2016, total accrued license fees due to Hua Cheng amounted to nil and $54,000, respectively.

(c) 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 of $2.7 million (RMB 18 million), which was paid in full in 2016. The Game IP Rights was recorded at cost and then subsequently transferred in exchange for the investment in Topsgame as disclosed in Note 8 above. 

(d) Short term entrust loans

During the first quarter of 2017, the company entered into a series of entrust loans with the entities controlled by Bruno Wu to obtain short-term financial support for the Company’s daily operation. As of March 31, 2017 and December 31, 2016, the Company had such borrowings in the amount of $2,173,891 and nil, respectively. As of the date of this report, all of such entrust loans have been paid back to related parties.

(e) Deposit for Investment in MYP

On September 19, 2016, the Company signed a non-binding term sheet with Sun Video Group HK Limited ("SVG") in purchase for its 51% ownership of M.Y. Products, LLC ("MYP"), a video commerce and supply chain management operator, in exchange for $50 million worth of Wecast Network common stock and $800,000 cash.

In accordance with the Term Sheet, the Company wired $800,000 (or its RMB equivalent) to MYP upon signing the term sheet as Good Faith Deposit. As of March 31, 2017, the transaction has already been closed, and all of the deposit paid to MYP has been transferred into liability due to BT, which is the former shareholder of SVG.

12. 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.

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On July 6, 2016, the Company entered into a Common Stock Purchase Agreement with Seven Stars Works Co., Ltd., a Korea company (“SSW”) and an affiliate of SSS for the purchase by SSW of 2,272,727 shares of the Company’s common stock, for $1.76 per share, or a total purchase price of $4.0 million.

On November 11, 2016, the Company entered into a Common Stock Purchase Agreement with Sun Seven Stars Hong Kong Cultural Development Limited, a Hong Kong company (“SSSHKCD”) and an affiliate of SSS. Pursuant to the terms of the SPA, the Company has agreed to sell and issue 1,136,365 shares of the Company’s common stock, for $1.76 per share, or a total purchase price of $2.0 million to SSSHKCD.

(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. 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 $411,000,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 $725,000 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 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. 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. The SSS Note 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 converted into 9,208,860 shares of the Company’s common stock.

In connection with the issuance of the SSS Note, the Company recorded debt issuance costs of approximately $131,000 which was to be amortized over the period of the SSS Note’s maturity date, of which approximately $123,000 was recognized during the year ended December 31, 2016.

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 of $1.81, no beneficial conversion feature was recognized.

The carrying value of the SSS Note as of June 27, 2016, which included the unamortized issuance costs of $8,000 and, pursuant to the terms of SSS Note, accrued interest expense of $25,000 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 Enternet was to 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”) was 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 was required to 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.

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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 Wecast Network. 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 was originally based on either the number of home/user pass or the net income of SSF. While the net income was to be 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.

On November 10, 2016, the Board of Directors (the “Board”) of Wecast Network held a special meeting. At the recommendation of the Company’s audit committee, the Board determined that it is in the best interests of the Company and the Company’s shareholders to amend the terms of the Earn-Out Share Award to (1) reduce the total Earn-Out Share Award from 15,000,000 shares of Common Stock to 10,000,000 shares of Common Stock and (2) measure the achievement of the earn-out provisions based on the Companywide achievement of homes passed in lieu of the measurement being measured by SFF’s stand-alone achievement of homes passed. Based on evidence provided to the Board, the requisite thresholds necessary to trigger issuance of all shares of Common Stock subject to the Earn-Out Share Award have been achieved. Accordingly, on November 10, 2016, the Board approved the issuance of 10,000,000 shares of its common stock, par value $0.001 per share (“Common Stock to SSS”) and the shares were issued on November 11, 2016,

The Company recognized the fair value of the Common Stock to SSS of approximately $13,700,000, based on the market price of the Company’s Common Stock, as Earn-out share award expense in the accompanying consolidated statement of operations for the year ended December 31, 2016.

13. Warrant Liabilities

In connection with our August 30, 2012 private financing, the Company issued 977,063 warrants to investors and the broker. In accordance with ASC 815-40, Contracts in Entity’s Own Equity, the warrants have been accounted as derivative liabilities to be re-measured at the end of every reporting period with the change in fair 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 fair value of the warrants are remeasured at each reporting period based on the Monte Carlo valuation.

As of March 31, 2017 and December 31, 2016, the warrant liability was re-valued as disclosed in Note 10, and recorded at its fair value of approximately $340,901 and $70,785, respectively, resulting in a loss of approximately $270,116 for the three months ended March 31, 2017. There were no warrants exercised during three months ended March 31, 2017.

14. Share-Based Payments

As of March 31, 2017, the Company had 2,251,428 options and 3,778,002 warrants outstanding (including the 1,818,182 warrants issued to SSS as disclosed in Note 12 (a) to purchase shares of our common stock.

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. The fair value of each option award is estimated on the date of grant using the Black-Scholes Merton valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line attribution method over the service period, which is generally the vesting period.

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Total share-based payments expense recorded by the Company during the three months ended March 31, 2017 and 2016 is as follows:

	Three Months Ended
	March 31		March 31
	2017		2016
Employees and directors share-based payments	$	71,428	$	139,000

Effective as of December 3, 2010, our Board of Directors approved the Wecast Network, 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 March 31, 2017, options available for issuance are  1,069,465 shares.

(a) Stock Options

Stock option activity for the three months ended March 31, 2017 is summarized as follows:

					Weighted Average
					Remaining		Aggregated
	Options		Weighted Average		Contractual Life		Intrinsic
	Outstanding		Exercise Price		(Years)		Value
Outstanding at January 1, 2017		2,101,428	$	2.42		4.59		-
Granted		150,000		1.62
Exercised		-
Expired		-
Forfeited		-
Outstanding at March 31, 2017		2,251,428		2.33		4.67		-
Vested and expected to vest as of March 31, 2017		2,251,428		2.33		4.67		-
Options exercisable at March 31, 2017 (vested)		1,687,051		2.80		3.38		-

On January 4, 2017 and March 1 and March 16, 2017, 70,000, 45,000 and 35,000 shares stock options, respectively, were issued to certain employees for services provided to us. The fair value of the stock options granted were valued using the Black-Scholes Merton method on the grant date, amounting to $47,415, $45,443 and $36,750, respectively.

The following table summarizes the assumptions used to estimate the fair values of the share options granted in the three months ended March 31, 2017 presented:

	Black Scholes
Risk-free interest rate		2.26% ~ 2.34	%
Expected volatility		55	%
Expected term		5.88 years
Expected dividend yield		0	%

As of March 31, 2017, approximately $501,000 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of approximately 2.40 years. The total fair value of shares vested during the three months ended March 31, 2017 and 2016 was approximately nil  and $16,000,  respectively.

(b) Warrants

In connection with the Company’s financings, the Warner Brother Agreement and the service agreements, the Company issued warrants to service providers to purchase common stock of the Company.

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As of March 31, 2017, the weighted average exercise price of the warrants was $2.20 and the weighted average remaining life was 1.19 years. The following table outlines the warrants outstanding and exercisable as of March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
	Number of		Number of
	Warrants		Warrants
Warrants Outstanding	Outstanding and Exercisable		Outstanding and Exercisable		Exercise Price		Expiration Date
2012 August Financing Warrants  (i)		536,250		536,250	$	1.50	08/30/17
2013 Broker Warrants (Series D Financing)		223,571		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
2016 Warrants to SSS (Note 12)		1,818,182		1,818,182	$	2.75	03/28/18
		3,778,002		3,783,002

(i) The warrants are classified as derivative liabilities as disclosed in Note 13.

15. Earnings (Loss) Per Common Share

	March 31,				March 31,
	2017				2016
	Basic		Diluted		Basic			Diluted
Net earnings/(loss) attributable to common stockholders		2,212,879		2,212,879		(2,136,471	)		(2,136,471	)
Average equivalent shares
Weighted-average common shares outstanding		55,382,002		55,382,002		24,484,562			24,484,562
Convertible preferred shares		-		2,150,237		-			-
Dilutive effect of convertible promissory notes		-		3,183,482		-			-
Total average equivalent shares		55,382,002		60,715,721		24,484,562			24,484,562
Earnings/(loss) per common share		0.04		0.04		(0.09	)		(0.09	)

Basic earnings (loss) per common share attributable to Wecast Network shareholders is calculated by dividing the net earnings (loss) attributable to Wecast Network shareholders by the weighted average number of outstanding common shares during the applicable period.

Diluted earnings (loss) per share is calculated by taking net earnings (loss), divided by the diluted weighted average common shares outstanding. Diluted loss per share for the three months ended March 31, 2016 equals basic loss per share because the effect of securities convertible into common shares is anti-dilutive.

For the three months ended March 31, 2017 and 2016, 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:

	March 31,		March 31,
	2017		2016
Warrants		3,778,002		4,009,669
Options		2,251,428		1,722,325
Series A Preferred Stock		—		933,333
Series E Preferred Stock		—		7,254,997
Convertible promissory note and interest		—		11,190,292
Total		6,029,430		25,110,616

16. Income Taxes

As of March 31, 2017, the Company had approximately $28.9 million of the U.S domestic cumulative tax loss carryforwards and approximately $17.5 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 three months ended March 31, 2017 is nil because net operating loss carryovers offset current taxable income 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 $0.4 million during the three months ended March 31, 2017.

As of March 31, 2017, there are no unrecorded tax benefits which would impact our financial position or our results of operations.

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17. Contingencies and Commitments

(a) Operating Lease Commitment

The Company is committed to paying leased property costs related to our offices in China as follows:

	Leased Property
Years ending December 31,	Costs
2017(9 months)		235,000
2018		266,000
2019		193,000
2020		199,000
Thereafter		84,000
Total	$	977,000

(b) Licensed Content Commitment

The Company is committed to paying content costs through 2019 as follows:

Years ending December 31,	Content Costs
2017 (9 months)		1,454,000
2018		217,000
2019		217,000
Total	$	1,888,000

(c) 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 March 31, 2017, 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.

(d) Acquisition of Property Commitment

In consideration of the Company’s business expansion and rising rental costs, in 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 RMB27.4 million (approximately $4,239,000), which the Company has paid RMB20.5 million (approximately $3,247,000) at the end of first quarter of 2017 and is committed to paying the remaining balance in 2017 as follows:

Years ending December 31,	Property
2017 (9 months)		992,000
Total	$	992,000

(e) 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
2017 (9 months)		106,000
Total	$	106,000

18. 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 legacy YOD business in China through Zhong Hai Media, 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 Media, 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.

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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

Legacy YOD business

The Company has agreements with distribution partners, including digital cable operators, IPTV operators, OTT streaming operators and mobile smartphone manufacturers and operator. A distribution partner that individually generates more than 10% of the Company’s revenue is considered a major customer.

On October 8, 2016, the Company signed an agreement to form a partnership with Zhejiang Yanhua ("Yanhua Agreement"), where Yanhua will act as the exclusive distribution operator (within the territory of the People's Republic of China) of WCST's licensed library of major studio films. According to the Yanhua Agreement, the existing legacy Hollywood studio paid contents as well as other IP contents specified in the agreement, along with the corresponding authorized rights letter that WCST is entitled to, will be turned over to Yanhua as a whole package, which was agreed to be priced at RMB13,000,000. In addition to the above-mentioned minimal guarantee fee of RMB13,000,000 specified, there is a provision in the Yanhua Agreement which states that once the revenue recognized from the existing contents transferred from WCST to Yanhua reaches the amount of RMB13,000,000, the revenue above RMB13,000,000 will be shared with WCST from the date when this revenue threshold is reached based on certain revenue-sharing mechanism stipulated in the Yanhua Agreement.

Pursuant to ASC Subtopic 926-605, Entertainment-Films - Revenue Recognition, for certain contracts that involve sub-licensing content within the specified license period, revenue is recognized upon delivery of films when the arrangement includes a nonrefundable minimum guarantee, delivery is complete and there are no substantive future obligations to provide future additional services.

According to the Yanhua Agreement, the total price of the Existing Contents to be transferred is RMB13,000,000. The payment is agreed to be paid in two installments, the first half of RMB6,500,000 was received on December 30, 2016 . The remaining RMB6,500,000 will be paid under the scenario that the license content fees due to Studios for the existing legacy Hollywood paid contents will be settled. Due to the fact that the second installment will depend upon some future events and is contingent in nature, we deem this portion of the fee is not fixed or determinable and therefore, this portion of the revenue did not meet the revenue recognition criteria to be recognized accordingly.

In terms of the additional revenue-sharing fee over the above-mentioned RMB13,000,000 fee specified, considering that this part of arrangement fee is not fixed or determinable at the time point as of March 31, 2017, it has not met the criteria for revenue recognition, management will recognize it once it becomes determinable and meet the other revenue recognition criteria in the future.

Pursuant to the Yanhua Agreement, RMB6,500,000 was recognized as revenue in the first three months ended March 31, 2017 based on the relative fair value of licensed content delivered to Yanhua.

For the three months ended March 31, 2016, two customers individually accounted for more than 10% of the Company’s revenue. Four customers individually accounted for 10% of the Company’s net accounts receivables as of March 31, 2016.

Wecast Services

The holdings and businesses from Company’s two acquisitions in January (Note 4) now reside under “Wecast Services”, our whollyowned subsidiary Wecast Services Limited. Wecast Services (which resides under the Product Sales Cloud) is currently primarily engaged with consumer electronics e-commerce and smart supply chain management operations. The Company’s ending customers include British Telecom, Micromax and about 15 to 20 other corporations across the world.

For the three months ended March 31, 2017, one customer individually accounted for more than 10% of the Company’s revenue. Three customers individually accounted for more than 10% of the Company’s net accounts receivables as of March 31, 2017, respectively.

(c) Major Suppliers

Legacy YOD business

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.

As of December 31, 2016, all licensed contents have been recognized as cost of revenues other than the ones that acquired from SSS in the amount of $17.7 million (note 12).

For the three months ended March 31, 2016, four suppliers individually accounted for more than 10% of the Company’s cost of revenues. Two suppliers individually accounted for 10% of the Company’s accounts payable as of March 31, 2016.

Wecast Services

The Company relies on agreements with consumer electronics manufactures.

For the three months ended March 31, 2017, two suppliers individually accounted for more than 10% of the Company’s cost of revenues. One supplier individually accounted for more than 10% of the Company’s accounts payable as of March 31, 2017.

(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 March 31, 2017 and December 31, 2016, 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, and smart sales products customers. 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.

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(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.

Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets.

Cash and time deposits maintained at banks consist of the following:

	March 31,		December 31,
	2017		2016
RMB denominated bank deposits with financial institutions in the PRC	$	474,523		1,566,107
US dollar denominated bank deposits with financial institutions in the PRC	$	177,570		670,951
HKD denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)		38,635		14,163
US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)	$	296,197		1,403,000
US dollar denominated bank deposits with financial institutions in The United States of America (“USA”)	$	58,637		95,030

As of March 31, 2017 and December 31, 2016 deposits of $371,824 and $384,515 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.

19. 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 $1,233 and $1,000 for the three months ended March 31, 2017 and March 31, 2016 respectively.

20. Segment Reporting

The Company’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. In fiscal year 2016, the Company operated and reported its performance in one segment. However, starting from fiscal year 2017, since Company has acquired Wecast Services Limited and Wide Angle Group Limited in January (see note 4), the Company has operated two segments based on different clouds that major business reside in, including Legacy YOD segement and Wecast Service segment. Therefore, there are two reportable segments for the three months ended March 31, 2017. The two reportable segments are: 

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.

Wecast Service - Wecast Services (which resides under the Product Sales Cloud) is currently primarily engaged with consumer electronics e-commerce and smart supply chain management operations.

Segment disclosures are on a performance basis consistent with internal management reporting. The following tables summarized the Company’s revenue and cost generated from different revenue streams.

		Three Months Ended
		March 31,		March 31,
		2017		2016
NET SALES TO EXTERNAL CUSTOMERS
-Legacy YOD	$	787,328	$	1,269,726
-Wecast Service		32,377,023		-
Net sales		33,164,351		1,269,726
GROSS PROFIT
-Legacy YOD		27,493		353,946
-Wecast Service		3,794,479		-
Gross profit		3,821,972		353,946
		March 31,		December 31,
		2017		2016
TOTAL ASSETS
-Legacy YOD	$	35,955,219	$	36,975,911
-Wecast Service		33,714,959		14,448,702
-Unallocated assets		4,181,904		4,321,677
-Intersegment elimination		(203,033)		-
Total		73,649,049		55,746,290

21. Subsequent Event

As at May 15, 2017 (reporting date approved by Board of Directors), there is no material subsequent event to be disclosed.

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Cautionary Note Regarding Forward Looking Statements

This Form 10-Q contains “forward-looking” statements that involve risks and uncertainties. You can identify these statements by the use of forward-looking words such as "may", "will", "expect", "anticipate", "estimate", "believe", "continue", or other similar words. You should read statements that contain these words carefully because they discuss our future expectations, contain projections of our future results of operations or financial condition or state other "forward-looking" information. We believe that it is important to communicate our future expectations to our investors. However, these forward-looking statements are not guarantees of future performance and actual results may differ materially from the expectations that are expressed, implied or forecasted in any such forward-looking statements. There may be events in the future that we are unable to accurately predict or control, including weather conditions and other natural disasters which may affect demand for our products, and the product–development and marketing efforts of our competitors. Examples of these events are more fully described in the Company’s 2016 Annual Report under Part I. Item 1A. Risk Factors.

Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, readers should carefully review the reports and documents the Company files from time to time with the SEC, particularly its Quarterly Reports on Form 10-Q, Annual Report on Form 10-K , Current Reports on Form 8-K and all amendments to those reports.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 

The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. In addition to historical information, the following discussion contains certain forward-looking information. See “Cautionary Note Regarding Forward Looking Statements” above for certain information concerning those forward-looking statements.

Overview

Wecast Network, Inc. (the “Company”), formerly known as 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 Wecast Network (“Wecast Network”, “we”, “us”, or “the Company”).

Wecast Network is leveraging its legacy operations as a premium content Video On Demand (“VOD”) service provider in China and aiming to be the leading provider of total B2B business solutions for today’s constantly evolving business landscape. With a focus on “BASE” or Blockchain, Artificial Intelligence, Supply Chain & Exchanges, Wecast is organized into three cloud-based categories and business units: Brand Intellectual Property Cloud, Product Sales Cloud, and the Financial Product Cloud. With the three clouds functioning both independently and interdependently, Wecast is creating a vertical, transactional and flexible platform for today’s global enterprises.

The Company’s mission and vision is to be the world’s leading cloud-based, total B2B enterprise solution and platform provider that empowers businesses to grow with Big Data technology.

Wecast Network launched its VOD service through acquisition of YOD Hong Kong, formerly Sinotop Group Limited, in July 30, 2010 through its subsidiary China CB Cayman. Through a series of contractual arrangements, YOD WFOE, the subsidiary of YOD Hong Kong, controls Sinotop Beijing, a corporation established in the PRC. Sinotop Beijing is the 80% owner of Zhong Hai Media, through which we provide: 1) integrated value–added business–to–business (“B2B”) service solutions for the delivery of VOD and enhanced premium content for digital cable; 2) integrated value–added business–to–business–to–customer (“B2B2C”) service solutions for the delivery of VOD and enhanced premium content for IPTV and OTT providers and; 3) a direct to user, or B2C, mobile video service app.

On October 8, 2016, the Company signed an agreement to form a partnership with Zhejiang Yanhua ("Yanhua Agreement"), where Yanhua will act as the exclusive distribution operator (within the territory of the People's Republic of China) of WCST's licensed library of major studio films. According to the Yanhua Agreement, the existing legacy Hollywood studio paid contents as well as other IP contents specified in the agreement, along with the corresponding authorized rights letter that WCST is entitled to, will be turned over to Yanhua as a whole package, which was agreed to be priced at RMB 13,000,000. In addition to the above-mentioned minimal guarantee fee of RMB 13,000,000 specified, there is a provision in the Yanhua Agreement which states that once the revenue recognized from the existing contents transferred from WCST to Yanhua reaches the amount of RMB 13,000,000, the revenue above RMB 13,000,000 will be shared with WCST from the date when this revenue threshold is reached based on certain revenue-sharing mechanism stipulated in the Yanhua Agreement.

On January 30, 2017, the Company entered into a Securities Purchase Agreement (the “Sun Video SPA”) with BT Capital Global Limited which has been controlled by Company’s chairman Bruno Wu, for the purchase by us of all of the outstanding capital stock of Sun Video Group Hong Kong Limited. On January 31, 2017, the Company entered into another Securities Purchase Agreement (the “Wide Angle SPA”) with BT and Sun Seven Stars Media Group Limited, one of the Company’s largest shareholders, controlled by Mr. Wu, as guarantor, for the purchase by us of 55% of the outstanding capital stock of Wide Angle. After acquiring these two entities, other than our legacy YOD business, we are also engaged with consumer electronics and smart hand held device design and supply chain management business.

Wecast Network is a next generation global brand licensing, IP sales and video commerce company driven by AI and Big Data. With a firm focus on 4 strategy pillars which include: Brand, Content, Commerce and Licensing, the Company is leveraging and optimizing its legacy operations as a premium content Video On Demand service provider in China to evolve into a global, vertical, ubiquitous and transactional B2B2C, mobile–driven, consumer and supply chain management platform. By aiming to establish the world’s premier multimedia, social networking and smart e–commerce–enabled network with the largest global effective connected user base, Wecast Network, through this expanded, cloud–based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of WCST –branded products and services to enterprise customers and end–use consumers – anytime and anywhere, across multiple platforms and devices.

Principal Factors Affecting Our Financial Performance

Our operating results are primarily affected by the following factors:

· Our ability to adapt our product and service offerings to meet consumer demands. Our expansion prospects are dependent on continued development of our product and services. The content distribution industry in China is highly competitive and dominated by large Internet companies that have more resources than us. Also the commerce industry for sales of consumer electronics and smart hand held device design and supply chain management business is highly competitive as well. The growth of our business will depend on whether we can develop new services and products that can offer higher quality contents, technological innovation and unique user experience.

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· Our ability to expand our subscriber base. Our business is affected by the overall size of our user base, which in turn is determined by, among other factors, (i) user experience of our service and products, (ii) our relationship with distribution platforms, such as digital cable and IPTV providers and mobile product manufacturers, (iii) expansion of our business to include increased service offerings and (iv) the expansion of our subscribers beyond smartphones to mobile tablets and other Internet-enabled mobile devices.

· Our ability to achieve revenue growth and meet internal or external expectations of future performance. In the latter half of 2013, we shifted our focus to our core multi-platform video streaming services and our business model is still evolving. Beginning in 2016, we also put more focus on consumer electronics and smart hand held device design and supply chain management business. Our financial performance is affected by, among other things, our ability to come to favorable business terms with our distribution partners, manage and procure contents in a cost-effective manner and manage our operating expenses. Overall, our normalized operating expenses have been decreasing but we have also incurred certain additional costs related to our financing activities, maintaining our public company status and making staff reductions.

· Changes in China’s economic, political or social policies or conditions. All of our legacy YOD business revenues were from sales to customers in China and all of our suppliers for Wecast Services were operated in China. Accordingly, our business, financial condition and results of operation is significantly influenced by the political, social and economic policies and conditions in China. While the Chinese economy has experienced significant growth over the past decade, growth has been uneven, both geographically and among various sectors of the economy. In addition, the Chinese government continues to play a significant role in regulating telecommunication and Internet industry development by imposing certain laws and regulations concerning Internet access and distribution of video content and other information over traditional and new media platforms. Some of the laws and regulations are also relatively new and involving and their interpretation and enforcement involve significant uncertainty.

Taxation 

United States

Wecast Network, Inc. and M. Y. Products, LLC are subject to United States tax. No provision for income taxes in the United States has been made as both companies had no taxable profit in the United States since inception.

Cayman Islands and the British Virgin Islands

Under the current laws of the Cayman Islands and the British Virgin Islands, we are not subject to tax on our income or capital gains. In addition, dividend payments are not subject to withholding tax in the Cayman Islands.

Hong Kong

Our subsidiaries that were incorporated in Hong Kong were under the current laws of Hong Kong, are subject to Profits Tax of 16.5%. No provision for Hong Kong Profits Tax has been made as net operating loss carryovers offset current taxable income.

The People’s Republic of China

Under the Enterprise Income Tax Law, our Chinese subsidiaries and VIEs are subject to an earned income tax of 25.0%.

Our future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of our pre-tax income and non-tax deductible expenses incurred. Our management carefully monitors these legal developments to determine if there will be any change in the statutory income tax rate.

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Consolidated Results of Operations 

Comparison of Three Months Ended March 31, 2017 and 2016

	Three Months Ended
	March 31, 2017			March 31, 2016			Amount Change			% Change
Revenue	$	33,164,351		$	1,269,726		$	31,894,625			2,512	%
Cost of revenue		29,342,379			915,780			28,426,599			3,104	%
Gross profit		3,821,972			353,946			3,468,026			980	%
Operating expense:
Selling, general and administrative expenses expenses		1,265,172			2,165,053			(899,881	)		(42	)%
Professional fees		267,133			367,446			(100,313	)		(27	)%
Depreciation and amortization		196,211			97,463			98,748			101	%
Total operating expense		1,728,516			2,629,962			(901,446	)		(34	)%
Income (loss) from operations		2,093,456			(2,276,016	)		4,369,472			(192	)%
Interest expense, net		(41,557	)		(33,473	)		(8,084	)		24	%
Change in fair value of warrant liabilities		(270,116	)		37,023			(307,139	)		(830	)%
Equity in loss of equity method investees		(43,746	)		(10,348	)		(33,398	)		323	%
Others		(99,570	)		162			(99,732	)		(61,563	)%
Income (loss) before income taxes		1,638,467			(2,282,652	)		3,921,119			(172	)%
Income tax benefit		-			8,612			(8,612	)		(100	)%
Net income (loss)		1,638,467			(2,274,040	)		3,912,507			(172	)%
Net loss attributable to non-controlling interest		(574,412	)		(137,569	)		(436,843	)		318	%
Net income (loss) attributable to Wecast Network, Inc. shareholders	$	2,212,879		$	(2,136,471	)	$	4,349,350			(204	)%

Revenues

We are leveraging our legacy operations as a premium content VOD service provider in China and aiming to be the leading provider of total B2B business solutions for 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 IP Cloud, Product Sales Cloud, and the Financial 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 outstanding capital stock of Wide Angle Group Limited (“Wide Angle”). The holdings and businesses from both of these aforementioned acquisitions now reside under “Wecast Services”, our wholly-owned subsidiary Wecast Services Limited. Wecast Services (which resides under the Product Sales Cloud) business unit, is currently primarily engaged with consumer electronics e-commerce and smart supply chain management operations. Our ending customers include British Telecom, Micromax and about 15 to 20 other corporations across the world.

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3>   Consulting Services

This one time revenue was attributable to platform build out consulting services to some of our customers.

	2017Q1					2016Q1		Diff
	USD		%			USD		USD			%
Legacy YOD		787,328		2	%		1,269,726		(482,398	)		-38	%
Wecast Services		27,719,067		84	%		-		27,719,067			100	%
Consulting Services		4,657,956		14	%		-		4,657,956			100	%
Total		33,164,351		100	%		1,269,726		31,894,625			2512	%

Revenue for the three months ended March 31, 2017 was $33.2 million as compared to $1.3 million for the same period in 2016, an increase of approximately $31.9 million, or 2512%. The increase was mainly due to our new business line acquired in January 2017 and one time consulting services that we provided to several customers. This was partially offset by a decrease of our legacy YOD business in the amount of $0.5 million, as the legacy YOD business shifts to a new exclusive distribution agreement with Zhejiang Yanhua Culture Media Co., Ltd. ("Yanhua ") which was announced in Q4 2016.

Cost of revenues

Cost of revenues was approximately $29.3 million for the three months ended March 31, 2017, as compared to $0.9 million for the three months ended March 31, 2016. Our cost of revenues was increased by $28.4 million which is in line with our increase of revenues. Our cost of revenues is primarily comprised of electronics products purchasing cost from Wecast Services.

Gross profit

Gross profit ratio for the three months ended March 31, 2017 was decreased by 16.36% from 27.88% to 11.52%, mainly due to the shift to the Wecast Services business from the legacy YOD business.

Selling, general and administrative expenses

Selling, general and administrative expense for the three months ended March 31, 2017 was $1.3 million as compared to $2.2 million for the same period in 2016, a decrease of approximately $0.9 million or 42% mainly due to:

1> Salaries and compensation for the three months ended March 31, 2017 was $0.8 million, a decrease of $0.64 million, Rent expenses for the three months ended March 31, 2017 was $0.1 million. The decrease were mainly attributable to certain existing employees and offices that had been used to provide consulting services, whose cost was recorded and shifted to cost of sales in the three months ended March 31, 2017.

2> Travel and entertainment expenses for the three months ended March 31, 2017 was $0.4 million, a decrease of $0.3 million, and advertising and promotion expenses for the three months ended March 31, 2017 was $0.02 million, a decrease of $0.03 million. This was due to the legacy YOD business was transitioning to Yanhua, which reduced our sales expenses related to that part of our business.

Professional fees

Professional fees for the three months ended March 31, 2017 was $0.3 million as compared to $0.4 million for the same period in 2016, a decrease of approximately $0.1 million. This was mainly due to the decrease of audit and valuation fee.

Depreciation and amortization

Depreciation and amortization for the three months ended March 31, 2017 was $0.2 million as compared to $0.1 million for the same period in 2016, an increase of approximately $0.1 million, mainly due to the new office building purchased in November 2016.

Change in fair value of warrant liabilities

Certain of our warrants are recognized as derivative liabilities and re-measured at the end of every reporting period and upon settlement, with the change in value reported in the statement of operations. We reported a loss of approximately $0.3 million and a gain of approximately $0.04 million for the three months ended March 31, 2017 and 2016, respectively. The changes are primarily due to fluctuation in our closing stock price.

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Income tax expenses

The income tax expense for the three months ended March 31, 2017 is nil because net operating loss carryovers offset current taxable income and deferred tax assets related to the net operating loss carryovers utilized had been offset by a valuations allowance.

Net loss attributable to non-controlling interest

Hua Cheng has a 20% non-controlling interest in Zhong Hai Media and as such we allocate 20% of the operating loss of Zhong Hai Media to Hua Cheng. During the three months ended March 31, 2017, approximately $0.01 million of our operating loss from Zhong Hai Media was allocated to Hua Cheng. For the three months ended March 31, 2016, operating loss attributable to non-controlling interest was approximately $0.01 million as well.

Dillon Yu has a 49% non-controlling interest in Shanghai Wecast Supply Chain Management Limited (“Wecast SH”) and as such we allocate 49% of the operating loss of Wecast SH to Dillon Yu. During the three months ended March 31, 2017, approximately $0.5 million of our operating loss from Wecast SH was allocated to Dillon Yu, which was nil in the same period in 2016.

Swiss Guorong Limited has a 45% non-controlling interest in Wide Angle and as such we allocate 45% of the operating loss of Wide Angle to Swiss Guorong Limited. During the three months ended March 31, 2017, approximately $0.03 million of our operating loss from Wide Angle was allocated to Swiss Guorong Limited, which was nil in the same period in 2016.

Liquidity and Capital Resources

As of March 31, 2017, the Company had cash of approximately $1.1 million and we had accumulated deficits of approximately $113.4 million and $115.7 million as of March 31, 2017 and December 31, 2016, respectively, due to recurring losses since our inception. These factors could raise substantial doubt about the Company’s ability to continue as a going concern.

We continue to rely on debt and equity financing to pay for ongoing operating expenses and execution of our business plan. On March 28, 2016, we completed a common stock financing for $10.0 million. On July 19, 2016, we completed a stock financing with SSW for $4.0 million. On August 12, 2016, we completed another common stock financing with Harvest Alternative Investment Opportunities SPC for $4.0 million. On November 17, 2016, we completed another common stock financing with SSSHK for $2.0 million. We have the ability to raise funds through various methods by either issuing debt or equity instruments.

The consolidated financial statements included in this report have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustment that might result from the outcome of this uncertainty.

The following table provides a summary of our net cash flows from operating, investing and financing activities. 

	Three Months Ended
	March 31,			March 31,
	2017			2016
Net cash used in operating activities	$	(3,386,146	)	$	(1,732,216	)
Net cash used in investing activities		(5,473	)		-
Net cash provided by financing activities		8,745			10,000,000
Effect of exchange rate changes on cash		675,202			(1,361	)
Net increase in cash		(2,707,672	)		8,266,423
Cash at beginning of period		3,761,814			3,768,897
Cash at end of period	$	1,054,142		$	12,035,320

Operating Activities

Cash used in operating activities increased for the three months ended March 31, 2017 compared to 2016, primarily caused by decrease in collection from accounts receivable, mainly due to the recent acquisition of Wide Angle, which is a trading company with longer credit collection period, and changes in accrued expenses and other liabilities, which was partially offset by net profit gained during the three months ended March 31, 2017.

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Financing Activities

There was little financing activities cash flow for three months period ended March 31, 2017, while in the same period in 2016, we received $10 million investment proceeds from the sales of 4,545,455 shares of our common stock and issuance of a two-year warrant to acquire an additional 1,818,182 shares of our common stock at an exercise price of $2.75 per share to SSS.

Effects of Inflation

Inflation and changing prices have had an effect on our business and we expect that inflation or changing prices could materially affect our business in the foreseeable future. Our management will closely monitor the price change and make efforts to maintain effective cost control in operations. 

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

Seasonality

Our operating results and operating cash flows historically have not been subject to seasonal variations. This pattern may change, however, as a result of new market opportunities or new product introductions.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates, and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.

Variable Interest Entities

We account for entities qualifying as variable interest entities (“VIEs”) in accordance with Financial Accounting Standards Boards (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation. For our consolidated VIEs, management has made evaluations of the relationships between our VIEs and the economic benefit flow of contractual arrangement with VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, we control the legal shareholders’ voting interests and have power of attorney in the VIEs, and therefore we are able to direct all business activities of the VIEs. As a result of such evaluation, management concluded that we are the primary beneficiary of our consolidated VIEs.

We have consulted our PRC legal counsel in assessing our ability to control our PRC VIEs. Any changes in PRC laws and regulations that affect our ability to control our PRC VIEs may preclude us from consolidating these companies in the future.

Revenue Recognition

When persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured, we recognize revenue as services are performed. For certain contracts that involve sub-licensing content within the specified license period, revenue is recognized in accordance with ASC Subtopic 926-605, Entertainment-Films - Revenue Recognition, whereby revenue is recognized upon delivery of films when the arrangement includes a nonrefundable minimum guarantee, delivery is complete and we have no substantive future obligations to provide future additional services. Payments received from customers for the performance of future services are recognized as deferred revenue, and subsequently recognized as revenue in the period that the service obligations are completed.

In accordance with ASC 605-25, Revenue Recognition - Multiple Element Arrangements, contracts with multiple element deliverables are separated into individual units for accounting purposes when the unit determined to have standalone value to the customer. Since the contract price is for all deliverables, we allocated the arrangement consideration to all deliverables at the inception of the arrangement based on their relative selling price. We use (a) vendor-specific objective evidence of selling price, if it exists, or, (b) the management’s best estimate of the selling price for that deliverable to determine the relative selling price of each individual unit.

For sale of smart products, we recognize revenue when persuasive evidence of an arrangement exists, products are delivered, the price to the buyer is fixed or determinable and collectability is reasonably assured.

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The recognition of revenue involves certain judgments and changes in our assumptions, judgments or estimations may have a material impact on the amount and timing of our revenue recognition.

Licensed Content

We obtain content through content licensing agreements with studios and distributors. We recognize licensed content when the license fee and the specified content titles are known or reasonably determinable. Prepaid license fees are classified as an asset on the consolidated balance sheets as licensed content and accrued license content fees payable are classified as a liability on the consolidated balance sheets.

We amortize licensed content in cost of revenues over the contents contractual window of availability based on the expected revenue derived from the licensed content, beginning with the month of first availability, such that our revenues bear a representative amount of the cost of the licensed content. We review factors that impact the amortization of licensed content on a regular basis, including factors that may bear direct impact on expected revenue from specific content titles. We estimate expected revenue by reviewing relevant factors, including marketing considerations, programming efforts, relationship with our channel partners, expected customer renewals and content offered by other distributors on the same platform. Changes in our expected revenue from licensed content could have a significant impact on our amortization pattern.

Intangible Assets and Goodwill

We account for intangible assets and goodwill, in accordance with ASC 350, Intangibles – Goodwill and Other. ASC 350 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead be evaluated for impairment at least annually. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives and reviewed for impairment whenever events indicate the carrying amount may not be recoverable. In accordance with ASC 350, goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. On an annual basis, we review goodwill for impairment by first assessing qualitative factors to determine whether the existence of events or circumstances makes it more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If we determine that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, goodwill is further tested for impairment by comparing the carrying value to the estimated fair value of its reporting units, determined using externally quoted prices (if available) or a discounted cash flow model and, when deemed necessary, a market approach.

Application of goodwill impairment tests requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units and determination of fair value of each reporting unit. Judgment applied when performing the qualitative analysis includes consideration of macroeconomic, industry and market conditions, overall financial performance of the reporting unit, composition, personnel or strategy changes affecting the reporting unit and recoverability of asset groups within a reporting unit. Judgments applied when performing the quantitative analysis includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these judgments, estimates and assumptions could materially affect the determination of fair value for each reporting unit.

Recent Accounting Pronouncements 

In May 2014, Financial Accounting Standards Board (or “FASB”) issued Accounting Standards Updates (or “ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). This guidance supersedes current guidance on revenue recognition in Topic 605, Revenue Recognition. In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 for all entities by one year. For public business entities that follow U.S. GAAP, the deferral results in the new revenue standard are being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact of adopting this standard on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11 as part of its simplification initiative. The ASU changes the way of measurement on inventory, which currently requires an entity to measure inventory at the lower of cost or market. The amendments in this Update require an entity to measure inventory within the scope of this Update at the lower of cost and net realizable value. We do not expect a material impact on our consolidated financial statement upon adoption of this ASU.

In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". ASU 2016-01 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. With respect to our consolidated financial statements, the most significant impact relates to the recognition and measurement for warrant liabilities. Additionally, ASU 2016-01 will impact the disclosure and presentation of financial assets and liabilities. ASU 2016-01 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. Management is currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

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In February 2016, the FASB issued ASU 2016-02 which amends the FASB Accounting Standards Codification and created Topic 842, "Leases". Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provides for enhanced disclosures. Leases will continue to be classified as either finance or operating. ASU 2016-02 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. Full retrospective application is prohibited and early adoption by public entities is permitted. Management is currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update affect only the narrow aspects of Topic 606. The areas improved include: (1) Assessing the Collectability Criterion in Paragraph 606-10-25-1(e) and Accounting for Contracts That Do Not Meet the Criteria for Step 1; (2) Presentation of Sales Taxes and Other Similar Taxes Collected from Customers; (3) Noncash Consideration; (4) Contract Modifications at Transition; (5) Completed Contracts at Transition; and (6) Technical Correction. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). We are planning to adopt the above standards on January 1, 2018. We may use either a full retrospective or a modified retrospective approach to adopt this standard. We are currently evaluating this standard and the related updates, including which transition approach to use as well as the impact of adoption on policies, practices and systems. The standard also requires us to evaluate whether our businesses promise to transfer services to the customer itself (as a principal) or to arrange for services to be provided by another party (as an agent). To make that determination, the standard uses a control model rather than the risks-and-rewards model in current U.S. GAAP. At this stage in the evaluation, we do not anticipate that the new guidance will have a material impact on our revenue recognition policies, practices or systems. We are currently evaluating the impact of this standard to its consolidated financial statements upon adoption.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”. The pronouncement changes the impairment model for most financial assets, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We do not expect a material impact to its consolidated financial statement upon adoption of this ASU.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance will be effective in the first quarter of 2018 and early adoption is permitted. Management is still evaluating the effect that this guidance will have on the consolidated financial statements and related disclosures.

In January 2017, FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. The update affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The update is intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides a more robust framework to use in determining when a set of assets and activities is a business, and also provides more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The guidance should be applied prospectively upon its effective date. The effect of ASU 2017-01 on the consolidated financial statements will be dependent on any future acquisitions.

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The update simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The update also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The update should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. For public companies, the update is effective for any annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance should be applied prospectively upon its effective date. We do not anticipate that the adoption of ASU 2017-04 will have a material impact on the consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information that would be required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief Financial Officer , as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2017. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2017, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were not effective to satisfy the objectives for which they are intended, as a result of one material weakness and one significant deficiency described below.

Changes in Internal Control Over Financial Reporting 

On February 4, 2017, Ms. Mei Chen resigned from her position as Chief Financial Officer of the Company and was replaced by Mr. Simon Wang, as the Chief Financial Officer and principal financial officer and principal accounting officer.

In the first quarter of 2017, one significant deficiency was identified as we did not maintain effective internal controls over the accounting for and related disclosures of significant non-routine transactions. Specifically, we did not maintain a sufficient complement of resources with an appropriate level of accounting knowledge, experience and training commensurate with our structure and financial reporting requirements related to the financial presentation associated with the consolidation of our newly acquired business under common control. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the Company's financial reporting. This control deficiency resulted in the reasonable possibility that a material misstatement would not be prevented or detected on a timely basis. This significant deficiency was identified and resulting errors corrected prior to the completion of our consolidated financial statements and segment reporting included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2017.

37

In 2016, a material weakness identified in the internal control of financial reporting related to the design, documentation and implementation of effective internal controls over the review of the cash flow forecasts used in the accounting for licensed content recoverability. Specifically, the Company did not design and maintain effective internal controls related to management’s review of the data inputs and assumptions used in its cash flow forecasts for licensed content recoverability.

Other than the changes stated above, there have been no other significant changes in internal control for the three months ended March 31, 2017, which have materially affected or would likely materially affect our internal control over financial reporting. The Company continues to invest resources in order to upgrade internal controls.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

There are no material pending legal proceedings to which we are a party or to which any of our property is subject. To the best of our knowledge, no such actions against us are contemplated or threatened.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our 2016 Annual Report which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K is not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. Other than as noted below, there have been no material changes in the risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2016.

The Company experiences significant competitive pressure, which may negatively impact its results.

The market for the Company’s products and services is very competitive and subject to rapid technological advances, new market entrants, non-traditional competitors, changes in industry standards and changes in customer needs and consumption models. Not only does the Company compete with global distributors, it also competes for customers with regional distributors and some of the Company’s own suppliers that maintain direct sales efforts. In addition, as the Company expands its offerings and geographies, the Company may encounter increased competition from current or new competitors. The Company’s failure to maintain and enhance its competitive position could adversely affect its business and prospects. Furthermore, the Company’s efforts to compete in the marketplace could cause deterioration of gross profit margins and, thus, overall profitability.

The size of the Company’s competitors vary across market sectors, as do the resources the Company has allocated to the sectors and geographic areas in which it does business. Therefore, some competitors may have greater resources or a more extensive customer or supplier base than the Company has in one or more of its market sectors and geographic areas, which may result in the Company not being able to effectively compete in certain markets which could impact the Company’s profitability and prospects.

Item 2. Unregistered Sales of Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of equity securities during the fiscal quarter ended March 31, 2017, other than those that were previously reported in our Current Reports on Form 8-K .

Item 3. Defaults Upon Senior Securities

There were no defaults upon senior securities during the fiscal quarter ended March 31, 2017.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

On May 11, 2017, Wecast Network, Inc. (the “Company”) received the written consent of the shareholders holding a majority of the voting power of the Company approving the issuance of up to $50 million shares of its common stock, par value $0.001 per share (the “Shares”), upon conversion of a promissory note issued as consideration in the acquisition of Sun Video Group Hong Kong Limited, a Hong Kong corporation and 55% of the outstanding capital stock of Wide Angle Group Limited, a Hong Kong company (together, the “Transaction”), which were previously approved by the Company’s Board of Directors and Audit Committee, as disclosed in the Company’s current reports on Form 8-K filed on February 1 and February 2, 2017, respectively.

The issuance of the Shares was approved by a total of 41,832,590 of the outstanding votes entitled to vote on the matter, representing 59.3%  of the votes of the Company’s issued and outstanding voting shares. The written consent will not take effect until 20 calendar days after the Company has filed  a final definitive Schedule 14C Information Statement with the United States Securities and Exchange Commission regarding the Transaction and the written shareholder consent and mailed that Information Statement to the Company’s shareholders.  No proxy soliciting material was utilized in connection with the approval by written consent.

Item 6. Exhibits

Exhibit
No.	Description
10.1	English translation of Equity Agreement, dated March 31, 2017, by and between Shanghai Blue World Investment Management Consulting Limited and Shanghai Pulse Consulting Company Limited*
31.1	Certifications of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certifications of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101.INS	XBRL Instance Document
101.SCH	Taxonomy Extension Schema Document
101.CAL	Taxonomy Extension Calculation Linkbase Document
101.DEF	Taxonomy Extension Definition Linkbase Document
101.LAB	Taxonomy Extension Label Linkbase Document
101.PRE	Taxonomy Extension Presentation Linkbase Document

*Filed herewith
**Furnished herewith

39

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on May 15, 2017.

Wecast Network, Inc.

By: /s/ Simon Wang

Name: Simon Wang
Title: Chief Financial Officer
(Principal Financial Officer and an Authorized Officer) 

40

EX-10.1

Exhibit 10.1

[English Translation for Reference Only]

Equity Agreement

of

Guizhou Sun Seven Stars Technology Trading Platform Limited

Between

Shanghai Blue World Investment Management Consulting Limited

and

Shanghai Pulse Consulting Company Limited

Dated March 31, 2017

1

[English Translation for Reference Only]

Equity Agreement

of

Guizhou Sun Seven Stars Technology Trading Platform Limited

Transferor (Party A):
Shanghai Blue World Investment Management Consulting Limited

Address: Room 227, Building 4, No. 2118 Guanghua Road, Minhang District, Shanghai

Transferee (Party B):
Shanghai Pulse Consulting Company Limited

Address: Room B36, Floor 4, No. 477, 1^st West Fute Road, Shanghai Free Trade Zone, China

Target Company:
Guizhou Sun Seven Stars Technology Trading Platform Limited

Address: No. 189 Zhonghuan Road, Baiyun District, Guiyang, Guizhou Province

Current share structure of the Target Company is as follows:

No.	Shareholder Name	Capital Contribution		Shareholding percentage (%)
1	Shanghai Blue World Investment Management Consulting Limited	RMB	5,000,000		5.88
2	Guizhou Province Sun Seven Stars Technology Limited	RMB	80,000,000		94.12
	Total	RMB	85,000,000		100

Whereas:

1. Party A legally holds 5.88% shares in Guizhou Sun Seven Stars Technology Trading Platform Limited (hereinafter referred to as the ‘Target Company’). Party A intends to transfer such 5.88% shares, and the Target Company’s shareholders meeting has approved such transfer.

2. Party B agrees to accept the 5.88% shares of the Target Company held by Party A. Meanwhile, the Target Company’s shareholders meeting has approved such transfer.

NOW, in consideration of the mutual covenants and friendly agreements, Party A and

2

[English Translation for Reference Only]

Party B have reached the following agreement in respect to the share transfer:

Article I Share Transfer

1. Party A agrees to transfer to Party B, and Party B agrees to accept, the 5.88% shares of the Target Company held by Party A.

2. Party A agrees to sell, and Party B agrees to purchase, the shares, which includes all interests and rights relating to the shares. The aforesaid shares are not subject to any encumbrance, including without limitation to, liens, pledges and other claims by a third party.

Article II Share Transfer Price and Payment

1. After negotiation among both parties, Party B agrees to purchase the 5.88% shares in the Target Company at RMB 5,000,000.

2. Payment:

Considering the fact that Party A has paid up RMB 5,000,000 as contribution to the registered capital of the Target Company, corresponding to the 5.88% shares it holds, Party B shall, 3 days after such registration of share transfer at the local Administration for Industry and Commerce, pay RMB 5,000,000 for such transferred shares to Party A’s bank account.

Article III Representations and Warranties of Party A

1. Party A represents and warrants that it is the sole owner of the shares transferred under Article 1 of this Agreement and has obtained the approval of the shareholders meeting of the Target Company.

2. Party A undertakes to assist in the registration change at local Administration for Industry and Commerce within 10 business days upon signing of this Agreement.

Article IV Representations and Warranties of Party B

Party B undertakes to fulfill its obligations under Article II hereto.

Article V Confidentiality

1. No Party shall disclose any business secrets or related information, or content of this Agreement or related documents for which it may have knowledge during performance of this Agreement to any third party without the written consent of both parties, except for any mandatory information disclosure required by law.

2. These Confidentiality clauses are independent, and shall survive any amendment, cancellation or termination of this Agreement.

Article VI Dispute Resolution

Any dispute arising from or in connection with this Agreement shall be settled through friendly negotiation. In case of failure to settle the dispute via negotiation, any party may submit the case to the People’s court of competent jurisdiction.

Article VII Effectiveness and Miscellaneous

1. This Agreement shall take into effect upon execution by both parties.

3

[English Translation for Reference Only]

2. Both parties shall resolve issues uncovered hereto during the performance. An amendment may be reached after consensus of both parties. Such amendment shall have the same validity as this Agreement.

3. The execution, validity, interpretation, termination and dispute resolution of this Agreement shall be governed by the laws of the People's Republic of China.

4. Both parties shall make the best efforts to cooperate with each other, as early as possible, to handle related approval procedures for the change of shareholders and corresponding registration change at local Administration for Industry and Commerce.

5. This Agreement shall be made in four original copies; Party A, Party B, the local Administration and the Target Company shall hold one copy, respectively.

——————————————————————No text below——————————————————————

Transferor (Party A): Shanghai Blue World Investment Management Consulting Limited

Legal representative / authorized representative:

Date: March 31, 2017

Transferee (Party B): Shanghai Pulse Consulting Company Limited

Legal representative / authorized representative:

Date: March 31, 2017

Executed in Guiyang City, China

4

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Bing Yang, certify that:

1. I have reviewed this Quarterly report on Form 10-Q of Wecast Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2017

/s/ Bing Yang

Bing Yang

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Simon Wang, certify that:

1. I have reviewed this Quarterly report on Form 10-Q of Wecast Network, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2017

/s/ Simon Wang

Simon Wang

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Bing Yang, Chief Executive Officer of WECAST NETWORK, INC. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2017 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this statement this 15^th day of May, 2017.

/s/ Bing Yang

Bing Yang

Chief Executive Officer

(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Wecast Network, Inc. and will be retained by Wecast Network, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Simon Wang, Chief Financial Officer of WECAST NETWORK, INC. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2017 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this statement this 15^th day of May, 2017.

/s/ Simon Wang

Simon Wang

Chief Financial Officer

(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Wecast Network, Inc. and will be retained by Wecast Network, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 09, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	WECAST NETWORK, INC.
Entity Central Index Key	0000837852
Trading Symbol	wcst
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		61,189,047
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1

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UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016	[1]
Current assets:
Cash	$ 1,054,142	$ 3,761,814
Accounts receivable, net	29,196,591	9,522,151
Licensed content, current	883,015	124,319
Notes receivable	421,475	1,749,830
Inventory	217,383	203,697
Prepaid expenses	347,968	375,944
Other current assets	6,925,012	3,581,822
Total current assets	39,045,586	19,319,577
Property and equipment, net	4,760,976	4,963,725
Licensed content, non-current	16,075,134	17,593,528
Intangible assets, net	425,113	453,242
Goodwill	6,648,911	6,648,911
Long term investments	6,635,483	6,654,664
Other non-current assets	57,846	112,643
Total assets	73,649,049	55,746,290
Current liabilities: (including amounts of the consolidated VIEs without recourse to Wecast Network, Inc. See note 3)
Accounts payable	27,231,787	13,341,680
Deferred revenue	609,466	1,350,054
Accrued interest due to a related party	587,688	557,918
Accrued other expenses	1,415,774	708,987
Accrued salaries	807,952	766,957
Payable for purchase of building	992,000	987,015
Amount due to related parties	2,173,891
Other current liabilities	331,719	1,995,297
Accrued license content fees	1,189,453	1,236,661
Convertible promissory note due to a related party	3,000,000	3,000,000
Warrant liabilities	340,901	70,785
Total current liabilities	38,680,631	24,015,354
Total liabilities	38,680,631	24,015,354
Commitments and contingencies (Note 17)
Convertible redeemable preferred stock: Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of March 31, 2017 and December 31, 2016, respectively	1,261,995	1,261,995
Equity:
Series E Preferred Stock - $0.001 par value; 16,500,000 shares authorized, 1,216,904 and 7,154,997 shares issued and outstanding, liquidation preference of $2,129,586 and $12,521,245 as of March 31, 2017 and December 31, 2016, respectively	1,217	7,155
Common stock - $0.001 par value; 1,500,000,000 shares authorized, 59,891,201 and 53,918,523 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	59,891	53,918
Additional paid-in capital	152,836,057	152,755,919
Accumulated deficit	(113,456,389)	(115,669,268)
Accumulated other comprehensive loss	(3,282)	(1,353,302)
Total Wecast Network shareholders' equity	39,437,494	35,794,422
Non-controlling interest	(5,731,071)	(5,325,481)
Total equity	33,706,423	30,468,941	[2]
Total liabilities, convertible redeemable preferred stock and equity	$ 73,649,049	$ 55,746,290

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

[2] The above consolidated statements of equity present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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UNAUDITED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	[1]
Convertible redeemable preferred stock, shares issued	7,000,000	7,000,000
Convertible redeemable preferred stock, shares outstanding	7,000,000	7,000,000
Convertible redeemable preferred stock, liquidation and deemed liquidation preference	$ 3,500,000	$ 3,500,000
Series E Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series E Preferred Stock, shares authorized	16,500,000	16,500,000
Series E Preferred Stock, shares issued	1,216,904	7,154,997
Series E Preferred Stock, shares outstanding	1,216,904	7,154,997
Series E Preferred Stock, liquidation preference	$ 2,129,586	$ 12,521,245
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	59,891,201	53,918,523
Common stock, shares outstanding	59,891,201	53,918,523

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 33,164,351	$ 1,269,726
Cost of revenue	29,342,379	915,780
Gross profit	3,821,972	353,946
Operating expenses:
Selling, general and administrative expense	1,265,172	2,165,053
Professional fees	267,133	367,446
Depreciation and amortization	196,211	97,463
Total operating expense	1,728,516	2,629,962
Income (loss) from operations	2,093,456	(2,276,016)
Interest and other income (expense)
Interest expense	(41,557)	(33,473)
Change in fair value of warrant liabilities	(270,116)	37,023
Equity in loss of equity method investees	(43,746)	(10,348)
Other	(99,570)	162
Income (loss) before income taxes	1,638,467	(2,282,652)
Income tax benefit		8,612
Net income (loss)	1,638,467	(2,274,040)
Net loss attributable to non-controlling interest	(574,412)	(137,569)
Net income (loss) attributable to Wecast Network, Inc. shareholders	$ 2,212,879	$ (2,136,471)
Basic earnings (loss) per share (in dollars per share)	$ 0.04	$ (0.09)
Diluted earnings (loss) per share (in dollars per share)	$ 0.04	$ (0.09)
Weighted average shares outstanding:
Diluted (in shares)	60,715,721	24,484,562
Basic (in shares)	55,382,002	24,484,562

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UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,638,467	$ (2,274,040)
Other comprehensive income (loss), net of nil tax
Foreign currency translation adjustments	1,518,842	13,132
Comprehensive income (loss)	3,157,309	(2,260,908)
Comprehensive loss attributable to non-controlling interest	(405,590)	(142,956)
Comprehensive income (loss) attributable to Wecast Network, Inc. shareholders	$ 3,562,899	$ (2,117,952)

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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2017		Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 1,638,467		$ (2,274,040)
Adjustments to reconcile net loss to net cash used in operating activities
Share-based compensation expense	71,428		138,770
Depreciation and amortization	196,211		97,463
Income tax benefit			(8,612)
Equity in loss of equity method investees	43,746		10,348
Loss on disposal of assets	40,139
Change in fair value of warrant liabilities	270,116		(37,023)
Foreign currency exchange losses			10,590
Change in assets and liabilities:
Accounts receivable	(19,674,440)		(1,153,595)
Licensed content	1,518,394		263,913
Prepaid expenses and other assets	(1,932,566)		140,391
Accounts payable	13,890,107		237
Accrued expenses, salary and other current liabilities	(881,051)		691,914
Amount due to related parties	2,173,891
Deferred revenue	(740,588)		(15,080)
Accrued license content fees			402,508
Net cash used in operating activities	(3,386,146)		(1,732,216)
Cash flows from investing activities:
Acquisition of and deposit for property and equipment	(5,473)
Net cash used in investing activities	(5,473)
Cash flows from financing activities
Proceeds from issuance of warrant and shares	8,745		10,000,000
Net cash provided by financing activities	8,745		10,000,000
Effect of exchange rate changes on cash	675,202		(1,361)
Net increase (decrease) in cash	(2,707,672)		8,266,423
Cash at beginning of period	3,761,814	[1]	3,768,897
Cash at end of period	1,054,142		12,035,320
Supplemental Cash Flow Information:
Issuance of convertible note for licensed content (Note 12)			17,717,847
Payable for purchase of building	992,000
Issuance of shares for the settlement of liability			$ 75,000

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)		Series E Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Wecast Network, Inc. Shareholders' Equity	Non- controlling Interest	Total
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
Balance (in shares) at Dec. 31, 2015		7,254,997	24,249,109
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation			$ 25	88,745			88,770		88,770
Share-based compensation (in shares)			25,000
Common stock issuance			$ 4,545	9,273,029			9,277,574		9,277,574
Common stock issuance (in 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				(442,500)			(442,500)		(442,500)
Common stock issued for settlement of liability			$ 42	74,958			75,000		75,000
Common stock issued for settlement of liability (in shares)			41,780
Net profit (loss)					(2,136,471)		(2,136,471)	(137,569)	(2,274,040)
Foreign currency translation adjustments, net of nil tax						18,519	18,519	(5,387)	13,132
Balance at Mar. 31, 2016		$ 7,255	$ 28,861	107,229,200	(88,594,311)	(396,391)	18,274,614	(2,530,987)	15,743,627
Balance (in shares) at Mar. 31, 2016		7,254,997	28,861,344
Balance at Dec. 31, 2016	[1]	$ 7,155	$ 53,918	152,755,919	(115,669,268)	(1,353,302)	35,794,422	(5,325,481)	30,468,941	[2]
Balance (in shares) at Dec. 31, 2016	[1]	7,154,997	53,918,523
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation				71,428			71,428		71,428
Common stock issuance			$ 30	(30)
Common stock issuance (in shares)			29,585
Common stock issued for warrant exercised			$ 5	8,740			8,745		8,745
Common stock issued for warrant exercised (in shares)			5,000
Common stock issued from conversion of series E preferred stock		$ (5,938)	$ 5,938
Common stock issued from conversion of series E preferred stock (in shares)		(5,938,093)	5,938,093
Net profit (loss)					2,212,879		2,212,879	(574,412)	1,638,467
Foreign currency translation adjustments, net of nil tax						1,350,020	1,350,020	168,822	1,518,842
Balance at Mar. 31, 2017		$ 1,217	$ 59,891	$ 152,836,057	$ (113,456,389)	$ (3,282)	$ 39,437,494	$ (5,731,071)	$ 33,706,423
Balance (in shares) at Mar. 31, 2017		1,216,904	59,891,201

[1] The above consolidated statements of equity present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

[2] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Organization and Principal Activities

3 Months Ended

Mar. 31, 2017

Organization And Principal Activities [Abstract]

Organization and Principal Activities

1. Organization and Principal Activities

Wecast Network, Inc. (the “Company”), formerly known as 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 Wecast Network (“Wecast Network”, “we”, “us”, or “the Company”).

Wecast Network is leveraging its legacy operations as a premium content Video On Demand (“VOD”) service provider in China and aiming to be the leading provider of total B2B business solutions for today’s constantly evolving business landscape. With a focus on “BASE” or Blockchain, Artificial Intelligence, Supply Chain & Exchanges, Wecast is organized into three cloud-based categories and business units: Brand IP Cloud, Product Sales Cloud, and the Financial Product Cloud. With the three clouds functioning both independently and interdependently, Wecast is creating a vertical, transactional and flexible platform for today’s global enterprises.

The Company’s mission and vision is to be the world’s leading cloud-based, total B2B enterprise solution and platform provider that empowers businesses to grow with Big Data technology.

Wecast Network launched its legacy VOD service through acquisition of YOD Hong Kong, formerly Sinotop Group Limited, in July 30, 2010 through its subsidiary China CB Cayman. Through a series of contractual arrangements, YOD WFOE, the subsidiary of YOD Hong Kong, controls Sinotop Beijing, a corporation established in the PRC. Sinotop Beijing is the 80% owner of Zhong Hai Media, through which we provide: 1) integrated value-added business-to-business (“B2B”) service solutions for the delivery of VOD and enhanced premium content for digital cable; 2) integrated value-added business-to-business-to-customer (“B2B2C”) service solutions for the delivery of VOD and enhanced premium content for IPTV and OTT providers and; 3) a direct to user, or B2C, mobile video service app. As a result of the contractual arrangements with Sinotop Beijing, we have the right to control management decisions and direct the economic activities that most significantly impact Sinotop Beijing and Zhong Hai Media, and accordingly, under generally accepted accounting principles in the United States (“U.S. GAAP”), we consolidate these operating entities in our consolidated financial statements.

On October 8, 2016, the Company signed an agreement with Zhejiang Yanhua (“Yanhua Agreement”), where Zhejiang Yanhua (“Yanhua”) will act as the exclusive distribution operator (within the territory of the People’ Republic of China) of Wecast Network’s licensed library of major studio films. According to the Yanhua Agreement, the existing legacy Hollywood studio paid contents as well as other IP contents specified in the agreement, along with the corresponding authorized rights letter that Wecast Network is entitled to, will be turned over to Yanhua as a whole package, which was agreed to be priced at RMB13,000,000. In addition to the above-mentioned minimal guarantee fee of RMB13,000,000 specified, there is a provision in the Yanhua Agreement which states that once the revenue recognized from the existing contents transferred from Wecast Network to Yanhua reaches the amount of RMB13,000,000, the revenue above RMB13,000,000 will be shared with Wecast Network from the date when this revenue threshold is reached based on certain revenue-sharing mechanism stipulated in the Yanhua Agreement.

On January 30, 2017, Company entered into a Securities Purchase Agreement (the “Sun Video SPA”) with BT Capital Global Limited which has been controlled by Company’s chairman Bruno Wu, for the purchase by us of all of the outstanding capital stock of Sun Video Group Hong Kong Limited. On January 31, 2017, Company entered into another Securities Purchase Agreement (the “Wide Angle SPA”) with BT and Sun Seven Stars Media Group Limited, one of the Company’s largest shareholders, controlled by Mr. Wu, as guarantor, for the purchase by us of 55% of the outstanding capital stock of Wide Angle Group Limited (“Wide Angle”). Details of these two acquisitions are in Note 4. After acquiring these two entities, other than Company’s legacy YOD business, Company is also engaged with consumer electronics and smart hand held device design and supply chain management business.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statements of the financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016, 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, 2016 filed with the Securities and Exchange Commission on March 31, 2017 (“2016 Annual Report”).

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Going Concern and Management's Plans

3 Months Ended

Mar. 31, 2017

Going Concern And Managements Plans [Abstract]

Going Concern and Management's Plans

2. Going Concern and Management’s Plans

For the three months ended March 31, 2017 and 2016, the Company incurred net income of approximately $1.6 million and net loss of $2.3 million, respectively, and cash used in operations was approximately $3.4 million and $1.7 million, respectively. Further, the Company had accumulated deficit of approximately $113.5 million and $115.7 million as of March 31, 2017 and December 31, 2016, respectively, due to recurring losses since the inception of its 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. In addition, the Company completed three common stock financings with Seven Star Works Co. Ltd. (“SSW”) for $4.0 million on July 19, 2016, with Harvest Alternative Investment Opportunities SPC (“Harvest”) for $4.0 million on August 12, 2016, and with Sun Seven Stars Hong Kong Cultural Development Limited (“SSSHK”) for $2.0 million on November 17, 2016, respectively. 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.

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VIE Structure and Arrangements

3 Months Ended

Mar. 31, 2017

Vie Structure And Arrangements [Abstract]

VIE Structure and Arrangements

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 Media, 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 Media 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 former legal shareholder of Sinotop Beijing (the spouse of our then-CEO). In January 2016, in connection with the appointment of 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, the former Vice President of Beijing Sun Seven Stars Culture Development Limited (“SSS”), (2) the Company terminated the series of contractual arrangements with Zhang Yan, and (3) the Company entered into new contractual agreements with Bing Wu and Yun Zhu (collectively, the “Former Sinotop VIE Agreements”). In October 2016, in accordance with our rights under contractual agreements, (1) the legal ownership of Sinotop Beijing was transferred from Bing Wu to Mei Chen, the former CFO of our Company, (2) the Company terminated the series of contractual arrangements with Bing Wu, and (3) the Company entered into new contractual agreements with Mei Chen (collectively, the “New Sinotop VIE Agreements”). Although the Former Sinotop VIE Agreements and 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 Former Sinotop VIE Agreements and New Sinotop VIE Agreements and the Company remained the primary beneficiary of Sinotop Beijing after the signing of the former Sinotop VIE Agreements and 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, Mei Chen 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 Mei Chen 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 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 Media that can be used only to settle obligations of Sinotop Beijing or Zhong Hai Media, except for the registered capital of these two entities amounting to RMB 21.8 million (approximately $3.3 million) as of March 31, 2017. As Sinotop Beijing and Zhong Hai Media 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 12(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 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 RMB 19.8 million and RMB 0.2 million, respectively, to the Nominee Shareholders for the purpose of establishing SSF and for development of its business. As of December 31, 2016, RMB 27.6 million (US $4.2 million) and RMB nil have been lent to Lan Yang and Yun Zhu, respectively. Lan Yang has contributed all of the RMB 27.6 million (US $4.2 million) in the form of capital contribution. 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. The loan extended to the Nominee Shareholders and the capital of SSF are fully eliminated in the consolidated financial statements.

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 RMB 50.0 million (approximately $7.5 million), among which RMB 27.6 million (approximately $4.2 million) has been injected as of March 31, 2017. 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. 

	March 31,		December 31,
	2017		2016
ASSETS
Current assets:
Cash	$	385,911	$	1,519,125
Accounts receivable, net		1,186,291		1,260,529
Prepaid expenses		62,881		30,455
Other current assets		1,798,108		191,427
Intercompany receivables due from the Company's subsidiaries(i)		896,512		150,725
Total current assets		4,329,703		3,152,261
Property and equipment, net		206,106		196,677
Intangible assets, net		2,312		2,570
Long term investments		4,984,167		3,654,664
Other non-current assets		57,846		442,782
Total assets	$	9,580,134	$	7,448,954
LIABILITIES
Current liabilities:
Accounts payable	$	1,191,076	$	5,817
Deferred revenue		3,522		824,563
Accrued expenses		248,226		268,074
Other current liabilities		413,327		394,314
Accrued license content fees		1,189,453		1,236,661
Intercompany payables due to the Company's subsidiaries(i)		14,793,082		14,752,338
Total current liabilities		17,838,686		17,481,767
Total liabilities	$	17,838,686	$	17,481,767

	Three Months Ended
	March 31,		March 31,
	2017		2016
Revenue	$	787,328	$	1,269,726
Net income (loss)	$	258,760	$	(479,887	)

	Three Months Ended
	March 31,		March 31,
	2017		2016
Net cash used in operating activities	$	(1,322,729)	$	(603,884	)
Net cash used in investing activities	$	-	$	-
Net cash provided by financing activities(i)	$	189,515	$	21,855

(i) Intercompany receivables and payables are eliminated upon consolidation. The intercompany financing activities include the capital injection of $0.29 million to Sinotop Beijing in the three months period ended March 31, 2017.

The revenue producing assets that are held by the VIEs and a VIE’s subsidiary primarily comprise of licensed content, network equipment, software and licenses and website. 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.

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Acquisition

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Acquisition

4. Acquisition

On January 30, 2017, we entered into a Securities Purchase Agreement (the “Sun Video SPA”) with BT Capital Global Limited, a Hong Kong company (“BT”) which has been controlled by Company’s chairman Bruno Wu, for the purchase by us of all of the outstanding capital stock of Sun Video Group Hong Kong Limited, a Hong Kong corporation (“SVG”) for an aggregate purchase price of $800,000 and a $50 million Promissory Note (the “SVG Note”) with the principal and interest thereon convertible into shares of the Company’s common stock at a conversion rate of $1.50 per share. BT has guaranteed that SVG will achieve certain financial goals within 12 months of the closing. Until receipt of necessary shareholder approvals, the SVG Note is not convertible into shares of our common stock, but once the necessary shareholder approval is received, the unpaid principal and interest thereon will automatically convert. Under the terms of the Sun Video SPA, BT has guaranteed that the business of the SVG and its subsidiaries (the “Sun Video Business”) shall achieve revenue of $250 million and $15 million of gross profit (collectively the “Performance Guarantees”) within 12 months of the closing. If the Sun Video Business fails to meet either of the Performance Guarantees within such time, BT shall forfeit back to us the shares of our common stock or SVG Note, on a pro rata basis based on the Performance Guarantee for which the Sun Video Business achieves the lowest percentage of the respective amount guaranteed.

In addition, if the Sun Video Business achieves more than $50 million in cumulative net income within 3 years of closing, (the “Net Income Threshold”), we shall pay BT 50% of the amount of any cumulative net income above the Net Income Threshold. Profit share payments shall be made on an annual basis, in either cash or stock at the discretion of our Board of Directors. If the Board decides to make the payment in stock, the number of our shares of common stock to be awarded shall be calculated based on the market price of such shares.

After the acquisition SVG changed its name to Wecast Services Limited, and is therefore also referred to herein as Wecast Services.

On January 31, 2017, we entered into a Securities Purchase Agreement (the “Wide Angle SPA”) with BT and Sun Seven Stars Media Group Limited, a Hong Kong company (“SSS”), one of the Company’s largest shareholders, controlled by our chairman Bruno Wu, as guarantor, for the purchase by us of 55% of the outstanding capital stock of Wide Angle for the sole consideration of the Company adding Wide Angle to the Sun Video Business acquired by the Company under the Sun Video SPA and thereby including the revenue and gross profit from Wide Angle in the calculation of the SVG Performance Guarantees set forth in the Sun Video SPA.

Since the Company, Wecast Services and Wide Angle were controlled by our chairman Bruno Wu since November 10, 2016, as well as both before and after the acquisition, this transaction was accounted for as a business combination between entities under common control by Mr. Wu. Therefore, in accordance with ASC Subtopic 805-50, the consolidated financial statements of the Company include the acquired assets and liabilities of the SVG and Wide Angle at their historical carrying amounts. In addition, the Company’s consolidated financial statements as of December 31, 2016 have been prepared as if the Wecast Services and Wide Angle had been owned by the Company since November 10, 2016 presented and the Company’s consolidated financial statements as of December 31, 2016 has been retrospectively adjusted accordingly.

As of March 31, 2017, the Company recorded SVG note in $50 million as Company’s additional paid in capital as Company believed that Performance Guarantees would be met within 12 months of the closing, but Net Income Threshold might probably not be met within 3 years of closing. Considering the proceeds transferred was larger than carrying amounts of the net assets received, such $50 million was then recognized as reduction to Company’s additional paid in capital.

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Accounts Receivable

3 Months Ended

Mar. 31, 2017

Accounts Receivable [Abstract]

Accounts Receivable

5. Accounts Receivable

Accounts receivable is consisted of the following:

	March 31,			December 31,
	2017			2016
Accounts receivable, gross:	$	32,040,818		$	12,350,947
Less: allowance for doubtful accounts		(2,844,227	)		(2,828,796	)
Accounts receivable, net	$	29,196,591		$	9,522,151

The movement of the allowance for doubtful accounts is as follows:

	March 31, 2017			December 31, 2016
Balance at the beginning of the period	$	(2,828,796	)	$	(3,672	)
Additions charged to bad debt expense		(15,431	)		(2,825,124	)
Write-off of bad debt allowance		-			-
Balance at the end of the period	$	(2,844,227	)	$	(2,828,796	)

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Property and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

The following is a breakdown of the Company’s property and equipment:

	March 31,			December 31,
	2017			2016
Furniture and office equipment	$	1,070,443		$	1,061,762
Vehicle		144,544			267,022
Office Building		3,969,632			3,948,058
Leasehold improvements		702,634			760,931
Total property and equipment		5,887,253			6,037,773
Less: accumulated depreciation		(1,126,277	)		(1,074,048	)
Property and Equipment, net	$	4,760,976		$	4,963,725

The Company recorded depreciation expense of approximately $168,082 and $34,000 for the three months ended March 31, 2017 and 2016 respectively.

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Intangible Assets

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

As of March 31, 2017 and December 31, 2016, the Company’s amortizing and indefinite lived intangible assets consisted of the following:

	March 31, 2017										December 31, 2016
Amortizing Intangible	Gross Carrying		Accumulated			Impairment			Net		Gross Carrying		Accumulated			Impairment			Net
Assets	Amount		Amortization			Loss			Balance		Amount		Amortization			Loss			Balance
Charter/ Cooperation agreements (iii)	$	2,755,821		(909,257	)		(1,846,564	)		-	$	2,755,821	$	(909,257	)	$	(1,846,564	)	$	-
Software and licenses		267,991		(244,585	)		-			23,406		267,991		(241,932	)		-			26,059
Patent and trademark		92,965		(39,943	)		-			53,022		92,965		(39,943	)		-			53,022
Website and mobile app development (ii)		593,193		(421,129	)		(172,064	)		-		593,193		(421,129	)		(172,064	)		-
Workforce (i)		305,694		(101,898	)		-			203,796		305,694		(76,422	)		-			229,272
Total amortizing intangible assets	$	4,015,664		(1,716,812	)		(2,018,628	)		280,224	$	4,015,664	$	(1,688,683	)	$	(2,018,628	)	$	308,353
Indefinite lived intangible assets																				-
Website name		134,290		-			-			134,290		134,290		-			-			134,290
Patent		10,599		-			-			10,599		10,599		-			-			10,599
Total intangible assets	$	4,160,553		(1,716,812	)		(2,018,622	)		425,113	$	4,160,553	$	(1,688,683	)	$	(2,018,628	)	$	453,242

(i) On April 1, 2016, Wecast Network entered into an agreement with Mr. Liu Changsheng, under which Wecast Network agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with a six month restriction period and a fair value of $121,695 in exchange for a workforce of 10 personnel experienced in programing content mobile apps. All 10 personnel enter into three year employment contracts with Wecast Network effective from April 1, 2016. The Company also acquired certain laptop and desktop computers with fair value of $3,655. According to the agreement, 30% of the cash consideration is due upon the signing of the agreement, 20% is due 2 months after the signing of the agreement and 50% is due 6 months after the signing of the agreement. Cash consideration of $93,825 has been paid as of March 31, 2017, and $93,828 was paid on October 31, 2016. If any of three key staff, as defined, terminated their employment with Wecast Network during the first 12 months of employment, Wecast Network 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. Wecast Network has accounted for the transaction as an asset acquisition in which Wecast Network 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.

The Company recorded amortization expense related to our amortizing intangible assets of approximately $28,129 and $63,000 for the three months ended March 31, 2017 and March 31, 2016 respectively, which included the amortization expense of the workforce acquired as stated above.

(ii) Considering a new mobile app has been developed to be put into market in October, 2016, the Company determined that the future cash flows generated from the old mobile app was nil. In accordance with ASC 350, Intangibles – Goodwill and Other, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. The Company estimated the fair value of this intangible asset to be nil as of March 31, 2017 and December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from mobile app development of $172,000 was recognized in 2016 to write off the entire book value of the old mobile app.

(iii) During the fourth quarter of 2016, the Company determined that the Charter/Cooperation agreements will not serve the business or generate future cash flow. As no future cash flows will be generated from the Charter/Cooperation agreements, the Company estimated the fair value of the Charter/Cooperation agreements to be nil as of December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from Charter/Cooperation agreements of $1,846,000 was recognized in 2016 to write off the entire book value of the Charter/Cooperation agreements.

.

The following table outlines the amortization expense for the next five years and thereafter:

	Amortization to be
Years ending December 31,	Recognized
2017(9 months)		90,277
2018		118,254
2019		35,794
2020 and thereafter		35,899
Total amortization to be recognized	$	280,224

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Long Term Investments

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Long Term Investments

8. Long Term Investments

Cost method investments

Cost method investments  as of the period ended March 31, 2017 and December 31, 2016 are as follow:

	March 31,		December 31,
	2017		2016
Topsgame (i)	$	3,174,235	$	3,156,985
Frequency (ii)		3,000,000		3,000,000
Total	$	6,174,235	$	6,156,985

(i) Investment in Topsgame

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. 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 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, based on the acquisition cost of Game IP Rights of approximately $2.7 million and accounts for the investment by the cost method.

On September 14, 2016, SSF increased its investment in Topsgame by RMB 3,900,000 (approximately $584,000) and maintained its 13% equity ownership of Topsgame. The investment continued to be accounted for using the cost method..

(ii) 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 million. The 8,566,271 Series A Preferred Stock represent 9% 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 accounts for the investment by the cost method.

There were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of our cost method investments, accordingly the fair value of our cost method investments are not estimated.

Equity method investments

Equity method investment movement for the three months ended on March 31, 2017 is as follow:

	March 31, 2017
		December  31, 2016		Capital increase		Gain/(Loss)  on investment			Impairment loss			Foreign currency  translation adjustments		March 31,  2017
Wecast Internet	(i)		132,782		-		(37,382	)		-			3,804		99,204
Hua Cheng	(ii)		364,897		-		(6,364	)		(38,448	)		41,959		362,044
Shandong Media	(iii)		-		-		-			-			-		-
Total			497,679		-		(43,746	)		(38,448	)		45,763		461,248

(i) Investment in Wecast Internet

In October 2016, the Company’s subsidiary, YOU On Demand (Asia) Ltd., invested RMB 1,000,000 (approximately $149,750) in Wecast Internet Limited (“Wecast Internet”) and held its 50% equity ownership.

(ii) Investment in Hua Cheng

As of the period ended March 31, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity method.

(iii) Investment in Shandong Media

As of the period ended March 31, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the equity method. The investment was fully impaired as of March 31, 2017 and December 31, 2016.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Stockholders' Equity Note [Abstract]

Stockholders' Equity

9. Stockholders’ Equity

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 and 2,272,727 shares were issued on July 19, 2016.

On August 11, 2016, the Company entered into 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 and 2,272,727 shares were issued on August 12, 2016.

On November 11, 2016, the Company entered into Common Stock Purchase Agreement (the “SSSHKCD SPA”) with Sun Seven Stars Hong Kong Cultural Development Limited, a Hong Kong company (“SSSHKCD”) and an affiliate of SSS. Pursuant to the terms of the SSSHKCD SPA, the Company has agreed to sell and issue 1,136,3654 shares of the Company’s common stock for $1.76 per share, or a total purchase price of $2.0 million to SSSHKCD. A total of $2.0 million was received and 1,136,365 shares were issued on November 17, 2016.

As described in Note 12, the Company and SSS entered into a series of agreements, including an agreement pursuant to which the Company agreed to sell and issue 4,545,455 shares of the Company's common stock and warrants to acquire an additional 1,818,182 shares (at an exercise price of $2.75 per share) for an aggregate purchase price of $10 million to SSS.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

10. 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.

The Company reviews 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 March 31, 2017 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, 2016. The following assumptions were incorporated:

	Black Scholes			Monte Carlo
	March 31,			December 31,
	2017			2016
Risk-free interest rate		0.91	%		0.70	%
Expected volatility		55	%		55	%
Expected term		0.42  year			0.67 year
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 as of March 31, 2017 and December 31, 2016, respectively:

	March 31, 2017
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	340,901	$	340,901

	December 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	70,785	$	70,785

The table below reflects the components effecting the change in fair value for the three months ended March 31, 2017:

	Level 3 Assets and Liabilities
	For the Three  Months Ended March 31 , 2017
	January 1,				Change in		March 31,
	2017		Settlements		Fair Value		2017
Liabilities:
Warrant liabilities (see Note 13)	$	70,785	$	-	$	270,116	$	340,901

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, notes receivable, accounts payable, accrued other expenses, other current liabilities payables and convertible promissory note as of March 31, 2017 and December 31, 2016, approximate fair value because of the short maturity of these instruments.

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Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

11. Related Party Transactions

(a) $3.0 Million Convertible Note 

On May 10, 2012, the Executive Chairman and Principal Executive Officer, 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 Amendment No. 4 to 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 Series E Preferred Stock at its intrinsic value, which was 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, we recognized a beneficial conversion feature of approximately $2,126,000 in 2014 which 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 Amendment No. 5 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.

On December 31, 2016, the Company and Mr. McMahon entered into an amendment pursuant to which the Note will be at Mr. McMahon’s option, payable on demand or convertible on demand into shares of the Company’s Series E Preferred Stock, provided that the Note will no longer be convertible into Series E Preferred Stock upon the conversion of the Series E Preferred stock owned by C Media into the Company’s Common Stock (pursuant to which all Series E Preferred Stock will be automatically converted) but then convertible only into Common Stock at a conversion price of $1.50, until December 31, 2018.

For the three months ended March 31, 2017 and 2016, the Company recorded interest expense of $30,000 and $30,000 related to the Note.

(b) Cost of revenue

Hua Cheng, the minority shareholder of Zhong Hai Media, charged Company licensed content fees of approximately nil and $56,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and December 31, 2016, total accrued license fees due to Hua Cheng amounted to nil and $54,000, respectively.

(c) 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 of $2.7 million (RMB 18 million), which was paid in full in 2016. The Game IP Rights was recorded at cost and then subsequently transferred in exchange for the investment in Topsgame as disclosed in Note 8 above. 

(d) Short term entrust loans

During the first quarter of 2017, the company entered into a series of entrust loans with the entities controlled by Bruno Wu to obtain short-term financial support for the Company’s daily operation. As of March 31, 2017 and December 31, 2016, the Company had such borrowings in the amount of $2,173,891 and nil, respectively. As of the date of this report, all of such entrust loans have been paid back to related parties.

(e) Deposit for Investment in MYP

On September 19, 2016, the Company signed a non-binding term sheet with Sun Video Group HK Limited ("SVG") in purchase for its 51% ownership of M.Y. Products, LLC ("MYP"), a video commerce and supply chain management operator, in exchange for $50 million worth of Wecast Network common stock and $800,000 cash.

In accordance with the Term Sheet, the Company wired $800,000 (or its RMB equivalent) to MYP upon signing the term sheet as Good Faith Deposit. As of March 31, 2017, the transaction has already been closed, and all of the deposit paid to MYP has been transferred into liabilitydue to BT, which is the former shareholder of SVG.

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SSS Agreements

3 Months Ended

Mar. 31, 2017

Sss Agreements [Abstract]

SSS Agreements

12. 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.

On July 6, 2016, the Company entered into a Common Stock Purchase Agreement with Seven Stars Works Co., Ltd., a Korea company (“SSW”) and an affiliate of SSS for the purchase by SSW of 2,272,727 shares of the Company’s common stock, for $1.76 per share, or a total purchase price of $4.0 million.

On November 11, 2016, the Company entered into a Common Stock Purchase Agreement with Sun Seven Stars Hong Kong Cultural Development Limited, a Hong Kong company (“SSSHKCD”) and an affiliate of SSS. Pursuant to the terms of the SPA, the Company has agreed to sell and issue 1,136,365 shares of the Company’s common stock, for $1.76 per share, or a total purchase price of $2.0 million to SSSHKCD.

(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. 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 $411,000,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 $725,000 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 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. 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. The SSS Note 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 converted into 9,208,860 shares of the Company’s common stock.

In connection with the issuance of the SSS Note, the Company recorded debt issuance costs of approximately $131,000 which was to be amortized over the period of the SSS Note’s maturity date, of which approximately $123,000 was recognized during the year ended December 31, 2016.

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 of $1.81, no beneficial conversion feature was recognized.

The carrying value of the SSS Note as of June 27, 2016, which included the unamortized issuance costs of $8,000 and, pursuant to the terms of SSS Note, accrued interest expense of $25,000 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 Enternet was to 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”) was 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 was required to 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 Wecast Network. 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 was originally based on either the number of home/user pass or the net income of SSF. While the net income was to be 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.

On November 10, 2016, the Board of Directors (the “Board”) of Wecast Network held a special meeting. At the recommendation of the Company’s audit committee, the Board determined that it is in the best interests of the Company and the Company’s shareholders to amend the terms of the Earn-Out Share Award to (1) reduce the total Earn-Out Share Award from 15,000,000 shares of Common Stock to 10,000,000 shares of Common Stock and (2) measure the achievement of the earn-out provisions based on the Companywide achievement of homes passed in lieu of the measurement being measured by SFF’s stand-alone achievement of homes passed. Based on evidence provided to the Board, the requisite thresholds necessary to trigger issuance of all shares of Common Stock subject to the Earn-Out Share Award have been achieved. Accordingly, on November 10, 2016, the Board approved the issuance of 10,000,000 shares of its common stock, par value $0.001 per share (“Common Stock to SSS”) and the shares were issued on November 11, 2016,

The Company recognized the fair value of the Common Stock to SSS of approximately $13,700,000, based on the market price of the Company’s Common Stock, as Earn-out share award expense in the accompanying consolidated statement of operations for the year ended December 31, 2016.

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Warrant Liabilities

3 Months Ended

Mar. 31, 2017

Warrant Liabilities [Abstract]

Warrant Liabilities

13. Warrant Liabilities

In connection with our August 30, 2012 private financing, the Company issued 977,063 warrants to investors and the broker. In accordance with ASC 815-40, Contracts in Entity’s Own Equity, the warrants have been accounted as derivative liabilities to be re-measured at the end of every reporting period with the change in fair 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 fair value of the warrants are remeasured at each reporting period based on the Monte Carlo valuation.

As of March 31, 2017 and December 31, 2016, the warrant liability was re-valued as disclosed in Note 10, and recorded at its fair value of approximately $340,901 and $70,785, respectively, resulting in a loss of approximately $270,116 for the three months ended March 31, 2017. There were no warrants exercised during three months ended March 31, 2017.

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Share-Based Payments

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Share-Based Payments

14. Share-Based Payments

As of March 31, 2017, the Company had 2,251,428 options and 3,778,002 warrants outstanding (including the 1,818,182 warrants issued to SSS as disclosed in Note 12 (a) to purchase shares of our common stock.

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. The fair value of each option award is estimated on the date of grant using the Black-Scholes Merton valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line attribution method over the service period, which is generally the vesting period.

Total share-based payments expense recorded by the Company during the three months ended March 31, 2017 and 2016 is as follows:

	Three Months Ended
	March 31		March 31
	2017		2016
Employees and directors share-based payments	$	71,428	$	139,000

Effective as of December 3, 2010, our Board of Directors approved the Wecast Network, 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 March 31, 2017, options available for issuance are  1,069,465 shares.

(a) Stock Options

Stock option activity for the three months ended March 31, 2017 is summarized as follows:

					Weighted Average
					Remaining		Aggregated
	Options		Weighted Average		Contractual Life		Intrinsic
	Outstanding		Exercise Price		(Years)		Value
Outstanding at January 1, 2017		2,101,428	$	2.42		4.59		-
Granted		150,000		1.62
Exercised		-
Expired		-
Forfeited		-
Outstanding at March 31, 2017		2,251,428		2.33		4.67		-
Vested and expected to vest as of March 31, 2017		2,251,428		2.33		4.67		-
Options exercisable at March 31, 2017 (vested)		1,687,051		2.80		3.38		-

On January 4, 2017 and March 1 and March 16, 2017, 70,000, 45,000 and 35,000 shares stock options, respectively, were issued to certain employees for services provided to us. The fair value of the stock options granted were valued using the Black-Scholes Merton method on the grant date, amounting to $47,415, $45,443 and $36,750, respectively.

The following table summarizes the assumptions used to estimate the fair values of the share options granted in the three months ended March 31, 2017 presented:

	Black Scholes
Risk-free interest rate		2.26% ~ 2.34	%
Expected volatility		55	%
Expected term		5.88 years
Expected dividend yield		0	%

As of March 31, 2017, approximately $501,000 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of approximately 2.40 years. The total fair value of shares vested during the three months ended March 31, 2017 and 2016 was approximately nil  and $16,000,  respectively.

(b) Warrants

In connection with the Company’s financings, the Warner Brother Agreement and the service agreements, the Company issued warrants to service providers to purchase common stock of the Company.

As of March 31, 2017, the weighted average exercise price of the warrants was $2.20 and the weighted average remaining life was 1.19 years. The following table outlines the warrants outstanding and exercisable as of March 31, 2017 and December 31, 2016:

	March 31,		December 31,
	2017		2016
	Number of		Number of
	Warrants		Warrants
Warrants Outstanding	Outstanding and  Exercisable		Outstanding and  Exercisable		Exercise Price		Expiration Date
2012 August Financing Warrants  (i)		536,250		536,250	$	1.50	08/30/17
2013 Broker Warrants (Series D Financing)		223,571		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
2016 Warrants to SSS (Note 12)		1,818,182		1,818,182	$	2.75	03/28/18
		3,778,002		3,783,002

(i) The warrants are classified as derivative liabilities as disclosed in Note 13.

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Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Net Loss Per Common Share

15. Earnings (Loss) Per Common Share

	March 31,				March 31,
	2017				2016
	Basic		Diluted		Basic			Diluted
Net earnings/(loss) attributable to common stockholders		2,212,879		2,212,879		(2,136,471	)		(2,136,471	)
Average equivalent shares
Weighted-average common shares outstanding		55,382,002		55,382,002		24,484,562			24,484,562
Convertible preferred shares		-		2,150,237		-			-
Dilutive effect of convertible promissory notes		-		3,183,482		-			-
Total average equivalent shares		55,382,002		60,715,721		24,484,562			24,484,562
Earnings/(loss) per common share		0.04		0.04		(0.09	)		(0.09	)

Basic earnings (loss) per common share attributable to Wecast Network shareholders is calculated by dividing the net earnings (loss) attributable to Wecast Network shareholders by the weighted average number of outstanding common shares during the applicable period.

Diluted earnings (loss) per share is calculated by taking net earnings (loss), divided by the diluted weighted average common shares outstanding. Diluted loss per share for the three months ended March 31, 2016 equals basic loss per share because the effect of securities convertible into common shares is anti-dilutive.

For the three months ended March 31, 2017 and 2016, 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:

	March 31,		March 31,
	2017		2016
Warrants		3,778,002		4,009,669
Options		2,251,428		1,722,325
Series A Preferred Stock		—		933,333
Series E Preferred Stock		—		7,254,997
Convertible promissory note and interest		—		11,190,292
Total		6,029,430		25,110,616

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

16. Income Taxes

As of March 31, 2017, the Company had approximately $28.9 million of the U.S domestic cumulative tax loss carryforwards and approximately $17.5 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 three months ended March 31, 2017 is nil because net operating loss carryovers offset current taxable income 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 $0.4 million during the three months ended March 31, 2017.

As of March 31, 2017, there are no unrecorded tax benefits which would impact our financial position or our results of operations.

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Contingencies and Commitments

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Commitments

17. Contingencies and Commitments

(a) Operating Lease Commitment

The Company is committed to paying leased property costs related to our offices in China as follows:

	Leased Property
Years ending December 31,	Costs
2017(9 months)		235,000
2018		266,000
2019		193,000
2020		199,000
Thereafter		84,000
Total	$	977,000

(b) Licensed Content Commitment

The Company is committed to paying content costs through 2019 as follows:

Years ending December 31,	Content Costs
2017 (9 months)		1,454,000
2018		217,000
2019		217,000
Total	$	1,888,000

(c) 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 March 31, 2017, 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.

(d) Acquisition of Property Commitment

In consideration of the Company’s business expansion and rising rental costs, in 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 RMB27.4 million (approximately $4,239,000), which the Company has paid RMB20.5 million (approximately $3,247,000) at the end of first quarter of 2017 and is committed to paying the remaining balance in 2017 as follows:

Years ending December 31,	Property
2017 (9 months)		992,000
Total	$	992,000

(e) 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
2017 (9 months)		106,000
Total	$	106,000

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Concentration, Credit and Other Risks

3 Months Ended

Mar. 31, 2017

Risks and Uncertainties [Abstract]

Concentration, Credit and Other Risks

18. 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 legacy YOD business in China through Zhong Hai Media, 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 Media, 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

Legacy YOD business

The Company has agreements with distribution partners, including digital cable operators, IPTV operators, OTT streaming operators and mobile smartphone manufacturers and operator. A distribution partner that individually generates more than 10% of the Company’s revenue is considered a major customer.

On October 8, 2016, the Company signed an agreement to form a partnership with Zhejiang Yanhua ("Yanhua Agreement"), where Yanhua will act as the exclusive distribution operator (within the territory of the People's Republic of China) of WCST's licensed library of major studio films. According to the Yanhua Agreement, the existing legacy Hollywood studio paid contents as well as other IP contents specified in the agreement, along with the corresponding authorized rights letter that WCST is entitled to, will be turned over to Yanhua as a whole package, which was agreed to be priced at RMB13,000,000. In addition to the above-mentioned minimal guarantee fee of RMB13,000,000 specified, there is a provision in the Yanhua Agreement which states that once the revenue recognized from the existing contents transferred from WCST to Yanhua reaches the amount of RMB13,000,000, the revenue above RMB13,000,000 will be shared with WCST from the date when this revenue threshold is reached based on certain revenue-sharing mechanism stipulated in the Yanhua Agreement.

Pursuant to ASC Subtopic 926-605, Entertainment-Films - Revenue Recognition, for certain contracts that involve sub-licensing content within the specified license period, revenue is recognized upon delivery of films when the arrangement includes a nonrefundable minimum guarantee, delivery is complete and there are no substantive future obligations to provide future additional services.

According to the Yanhua Agreement, the total price of the Existing Contents to be transferred is RMB13,000,000. The payment is agreed to be paid in two installments, the first half of RMB6,500,000 was received on December 30, 2016 . The remaining RMB6,500,000 will be paid under the scenario that the license content fees due to Studios for the existing legacy Hollywood paid contents will be settled. Due to the fact that the second installment will depend upon some future events and is contingent in nature, we deem this portion of the fee is not fixed or determinable and therefore, this portion of the revenue did not meet the revenue recognition criteria to be recognized accordingly.

In terms of the additional revenue-sharing fee over the above-mentioned RMB13,000,000 fee specified, considering that this part of arrangement fee is not fixed or determinable at the time point as of March 31, 2017, it has not met the criteria for revenue recognition, management will recognize it once it becomes determinable and meet the other revenue recognition criteria in the future.

Pursuant to the Yanhua Agreement, RMB6,500,000 was recognized as revenue in the first three months ended March 31, 2017 based on the relative fair value of licensed content delivered to Yanhua.

For the three months ended March 31, 2016, two customers individually accounted for more than 10% of the Company’s revenue. Four customers individually accounted for 10% of the Company’s net accounts receivables as of March 31, 2016.

Wecast Services

The holdings and businesses from Company’s two acquisitions in January (Note 4) now reside under “Wecast Services”, our whollyowned subsidiary Wecast Services Limited. Wecast Services (which resides under the Product Sales Cloud) is currently primarily engaged with consumer electronics e-commerce and smart supply chain management operations. The Company’s ending customers include British Telecom, Micromax and about 15 to 20 other corporations across the world.

For the three months ended March 31, 2017, one customer individually accounted for more than 10% of the Company’s revenue. Three customers individually accounted for more than 10% of the Company’s net accounts receivables as of March 31, 2017, respectively.

(c) Major Suppliers

Legacy YOD business

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.

As of December 31, 2016, all licensed contents have been recognized as cost of revenues other than the ones that acquired from SSS in the amount of $17.7 million (note 12).

For the three months ended March 31, 2016, four suppliers individually accounted for more than 10% of the Company’s cost of revenues. Two suppliers individually accounted for 10% of the Company’s accounts payable as of March 31, 2016.

Wecast Services

The Company relies on agreements with consumer electronics manufactures.

For the three months ended March 31, 2017, two suppliers individually accounted for more than 10% of the Company’s cost of revenues. One supplier individually accounted for more than 10% of the Company’s accounts payable as of March 31, 2017.

(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 March 31, 2017 and December 31, 2016, 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, and smart sales products customers. 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.

Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets.

Cash and time deposits maintained at banks consist of the following:

	March 31,		December 31,
	2017		2016
RMB denominated bank deposits with financial institutions in the PRC	$	474,523		1,566,107
US dollar denominated bank deposits with financial institutions in the PRC	$	177,570		670,951
HKD denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)		38,635		14,163
US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)	$	296,197		1,403,000
US dollar denominated bank deposits with financial institutions in The United States of America (“USA”)	$	58,637		95,030

As of March 31, 2017 and December 31, 2016 deposits of $371,824 and $384,515 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.

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Defined Contribution Plan

3 Months Ended

Mar. 31, 2017

Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]

Defined Contribution Plan

19. 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 $1,233 and $1,000 for the three months ended March 31, 2017 and March 31, 2016 respectively.

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Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

20. Segment Reporting

The Company’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. In fiscal year 2016, the Company operated and reported its performance in one segment. However, starting from fiscal year 2017, since Company has acquired Wecast Services Limited and Wide Angle Group Limited in January (see note 4), the Company has operated two segments based on different clouds that major business reside in, including Legacy YOD segement and Wecast Service segment. Therefore, there are two reportable segments for the three months ended March 31, 2017. The two reportable segments are: 

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.

Wecast Service - Wecast Services (which resides under the Product Sales Cloud) is currently primarily engaged with consumer electronics e-commerce and smart supply chain management operations.

Segment disclosures are on a performance basis consistent with internal management reporting. The following tables summarized the Company’s revenue and cost generated from different revenue streams.

		Three Months Ended
		March 31,		March 31,
		2017		2016
NET SALES TO EXTERNAL CUSTOMERS
-Legacy YOD	$	787,328	$	1,269,726
-Wecast Service		32,377,023		-
Net sales		33,164,351		1,269,726
GROSS PROFIT
-Legacy YOD		27,493		353,946
-Wecast Service		3,794,479		-
Gross profit		3,821,972		353,946
		March 31,		December 31,
		2017		2016
TOTAL ASSETS
-Legacy YOD	$	35,955,219	$	36,975,911
-Wecast Service		33,714,959		14,448,702
-Unallocated assets		4,181,904		4,321,677
-Intersegment elimination		(203,033)		-
Total		73,649,049		55,746,290

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VIE Structure and Arrangements (Tables)

3 Months Ended

Mar. 31, 2017

Vie Structure And Arrangements [Abstract]

Schedule of consolidated financial statements

	March 31,		December 31,
	2017		2016
ASSETS
Current assets:
Cash	$	385,911	$	1,519,125
Accounts receivable, net		1,186,291		1,260,529
Prepaid expenses		62,881		30,455
Other current assets		1,798,108		191,427
Intercompany receivables due from the Company's subsidiaries(i)		896,512		150,725
Total current assets		4,329,703		3,152,261
Property and equipment, net		206,106		196,677
Intangible assets, net		2,312		2,570
Long term investments		4,984,167		3,654,664
Other non-current assets		57,846		442,782
Total assets	$	9,580,134	$	7,448,954
LIABILITIES
Current liabilities:
Accounts payable	$	1,191,076	$	5,817
Deferred revenue		3,522		824,563
Accrued expenses		248,226		268,074
Other current liabilities		413,327		394,314
Accrued license content fees		1,189,453		1,236,661
Intercompany payables due to the Company's subsidiaries(i)		14,793,082		14,752,338
Total current liabilities		17,838,686		17,481,767
Total liabilities	$	17,838,686	$	17,481,767

	Three Months Ended
	March 31,		March 31,
	2017		2016
Revenue	$	787,328	$	1,269,726
Net income (loss)	$	258,760	$	(479,887	)

	Three Months Ended
	March 31,		March 31,
	2017		2016
Net cash used in operating activities	$	(1,322,729)	$	(603,884	)
Net cash used in investing activities	$	-	$	-
Net cash provided by financing activities(i)	$	189,515	$	21,855

(i) Intercompany receivables and payables are eliminated upon consolidation. The intercompany financing activities include the capital injection of $0.29 million to Sinotop Beijing in the three months period ended March 31, 2017.

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Subsequent Event

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Event

21. Subsequent Event

As at May 15, 2017 (reporting date approved by Board of Directors), there is no material subsequent event to be disclosed.

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Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2017

Accounts Receivable [Abstract]

Schedule of accounts receivable

	March 31,			December 31,
	2017			2016
Accounts receivable, gross:	$	32,040,818		$	12,350,947
Less: allowance for doubtful accounts		(2,844,227	)		(2,828,796	)
Accounts receivable, net	$	29,196,591		$	9,522,151

Schedule of movement in allowance for doubtful accounts receivable

	March 31, 2017			December 31, 2016
Balance at the beginning of the period	$	(2,828,796	)	$	(3,672	)
Additions charged to bad debt expense		(15,431	)		(2,825,124	)
Write-off of bad debt allowance		-			-
Balance at the end of the period	$	(2,844,227	)	$	(2,828,796	)

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31,			December 31,
	2017			2016
Furniture and office equipment	$	1,070,443		$	1,061,762
Vehicle		144,544			267,022
Office Building		3,969,632			3,948,058
Leasehold improvements		702,634			760,931
Total property and equipment		5,887,253			6,037,773
Less: accumulated depreciation		(1,126,277	)		(1,074,048	)
Property and Equipment, net	$	4,760,976		$	4,963,725

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortizing and indefinite lived intangible assets

	March 31, 2017										December 31, 2016
Amortizing Intangible	Gross Carrying		Accumulated			Impairment			Net		Gross Carrying		Accumulated			Impairment			Net
Assets	Amount		Amortization			Loss			Balance		Amount		Amortization			Loss			Balance
Charter/ Cooperation agreements (iii)	$	2,755,821		(909,257	)		(1,846,564	)		-	$	2,755,821	$	(909,257	)	$	(1,846,564	)	$	-
Software and licenses		267,991		(244,585	)		-			23,406		267,991		(241,932	)		-			26,059
Patent and trademark		92,965		(39,943	)		-			53,022		92,965		(39,943	)		-			53,022
Website and mobile app development (ii)		593,193		(421,129	)		(172,064	)		-		593,193		(421,129	)		(172,064	)		-
Workforce (i)		305,694		(101,898	)		-			203,796		305,694		(76,422	)		-			229,272
Total amortizing intangible assets	$	4,015,664		(1,716,812	)		(2,018,628	)		280,224	$	4,015,664	$	(1,688,683	)	$	(2,018,628	)	$	308,353
Indefinite lived intangible assets																				-
Website name		134,290		-			-			134,290		134,290		-			-			134,290
Patent		10,599		-			-			10,599		10,599		-			-			10,599
Total intangible assets	$	4,160,553		(1,716,812	)		(2,018,622	)		425,113	$	4,160,553	$	(1,688,683	)	$	(2,018,628	)	$	453,242

(i) On April 1, 2016, Wecast Network entered into an agreement with Mr. Liu Changsheng, under which Wecast Network agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with a six month restriction period and a fair value of $121,695 in exchange for a workforce of 10 personnel experienced in programing content mobile apps. All 10 personnel enter into three year employment contracts with Wecast Network effective from April 1, 2016. The Company also acquired certain laptop and desktop computers with fair value of $3,655. According to the agreement, 30% of the cash consideration is due upon the signing of the agreement, 20% is due 2 months after the signing of the agreement and 50% is due 6 months after the signing of the agreement. Cash consideration of $93,825 has been paid as of March 31, 2017, and $93,828 was paid on October 31, 2016. If any of three key staff, as defined, terminated their employment with Wecast Network during the first 12 months of employment, Wecast Network 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. Wecast Network has accounted for the transaction as an asset acquisition in which Wecast Network 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.

The Company recorded amortization expense related to our amortizing intangible assets of approximately $28,129 and $63,000 for the three months ended March 31, 2017 and March 31, 2016 respectively, which included the amortization expense of the workforce acquired as stated above.

(ii) Considering a new mobile app has been developed to be put into market in October, 2016, the Company determined that the future cash flows generated from the old mobile app was nil. In accordance with ASC 350, Intangibles – Goodwill and Other, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. The Company estimated the fair value of this intangible asset to be nil as of March 31, 2017 and December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from mobile app development of $172,000 was recognized in 2016 to write off the entire book value of the old mobile app.

(iii) During the fourth quarter of 2016, the Company determined that the Charter/Cooperation agreements will not serve the business or generate future cash flow. As no future cash flows will be generated from the Charter/Cooperation agreements, the Company estimated the fair value of the Charter/Cooperation agreements to be nil as of December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from Charter/Cooperation agreements of $1,846,000 was recognized in 2016 to write off the entire book value of the Charter/Cooperation agreements.

Schedule of amortization expense for the next five years

	Amortization to be
Years ending December 31,	Recognized
2017(9 months)		90,277
2018		118,254
2019		35,794
2020 and thereafter		35,899
Total amortization to be recognized	$	280,224

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Long Term Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of cost method investments

	March 31,		December 31,
	2017		2016
Topsgame (i)	$	3,174,235	$	3,156,985
Frequency (ii)		3,000,000		3,000,000
Total	$	6,174,235	$	6,156,985

(i) Investment in Topsgame

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. 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 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, based on the acquisition cost of Game IP Rights of approximately $2.7 million and accounts for the investment by the cost method.

On September 14, 2016, SSF increased its investment in Topsgame by RMB 3,900,000 (approximately $584,000) and maintained its 13% equity ownership of Topsgame. The investment continued to be accounted for using the cost method..

(ii) 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 million. The 8,566,271 Series A Preferred Stock represent 9% 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 accounts for the investment by the cost method.

There were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of our cost method investments, accordingly the fair value of our cost method investments are not estimated.

Schedule of long term investment under equity method

	March 31, 2017
		December  31, 2016		Capital increase		Gain/(Loss)  on investment			Impairment loss			Foreign currency  translation adjustments		March 31,  2017
Wecast Internet	(i)		132,782		-		(37,382	)		-			3,804		99,204
Hua Cheng	(ii)		364,897		-		(6,364	)		(38,448	)		41,959		362,044
Shandong Media	(iii)		-		-		-			-			-		-
Total			497,679		-		(43,746	)		(38,448	)		45,763		461,248

(i) Investment in Wecast Internet

In October 2016, the Company’s subsidiary, YOU On Demand (Asia) Ltd., invested RMB 1,000,000 (approximately $149,750) in Wecast Internet Limited (“Wecast Internet”) and held its 50% equity ownership.

(ii) Investment in Hua Cheng

As of the period ended March 31, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity method.

(iii) Investment in Shandong Media

As of the period ended March 31, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the equity method. The investment was fully impaired as of March 31, 2017 and December 31, 2016.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of assumptions for estimating fair value of warrant liabilities

	Black Scholes			Monte Carlo
	March 31,			December 31,
	2017			2016
Risk-free interest rate		0.91	%		0.70	%
Expected volatility		55	%		55	%
Expected term		0.42  year			0.67 year
Expected dividend yield		0	%		0	%

Schedule of assets and liabilities measured at fair value on a recurring basis

	March 31, 2017
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	340,901	$	340,901

	December 31, 2016
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities
Warrant liabilities (see Note 13)	$	-	$	-	$	70,785	$	70,785

Schedule of components effecting the change in fair value

	Level 3 Assets and Liabilities
	For the Three  Months Ended March 31 , 2017
	January 1,				Change in		March 31,
	2017		Settlements		Fair Value		2017
Liabilities:
Warrant liabilities (see Note 13)	$	70,785	$	-	$	270,116	$	340,901

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Share-Based Payments (Tables)

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Schedule of share-based payments expense

	Three Months Ended
	March 31		March 31
	2017		2016
Employees and directors share-based payments	$	71,428	$	139,000

Schedule of stock option activity

					Weighted Average
					Remaining		Aggregated
	Options		Weighted Average		Contractual Life		Intrinsic
	Outstanding		Exercise Price		(Years)		Value
Outstanding at January 1, 2017		2,101,428	$	2.42		4.59		-
Granted		150,000		1.62
Exercised		-
Expired		-
Forfeited		-
Outstanding at March 31, 2017		2,251,428		2.33		4.67		-
Vested and expected to vest as of March 31, 2017		2,251,428		2.33		4.67		-
Options exercisable at March 31, 2017 (vested)		1,687,051		2.80		3.38		-

Schedule of assumptions used to estimate the fair values of the share options

	Black Scholes
Risk-free interest rate		2.26% ~ 2.34	%
Expected volatility		55	%
Expected term		5.88 years
Expected dividend yield		0	%

Schedule of warrants outstanding and exercisable

	March 31,		December 31,
	2017		2016
	Number of		Number of
	Warrants		Warrants
Warrants Outstanding	Outstanding and  Exercisable		Outstanding and  Exercisable		Exercise Price		Expiration Date
2012 August Financing Warrants  (i)		536,250		536,250	$	1.50	08/30/17
2013 Broker Warrants (Series D Financing)		223,571		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
2016 Warrants to SSS (Note 12)		1,818,182		1,818,182	$	2.75	03/28/18
		3,778,002		3,783,002

(i) The warrants are classified as derivative liabilities as disclosed in Note 13.

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Earnings (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Schedule of number of securities convertible into common shares

	March 31,				March 31,
	2017				2016
	Basic		Diluted		Basic			Diluted
Net earnings/(loss) attributable to common stockholders		2,212,879		2,212,879		(2,136,471	)		(2,136,471	)
Average equivalent shares
Weighted-average common shares outstanding		55,382,002		55,382,002		24,484,562			24,484,562
Convertible preferred shares		-		2,150,237		-			-
Dilutive effect of convertible promissory notes		-		3,183,482		-			-
Total average equivalent shares		55,382,002		60,715,721		24,484,562			24,484,562
Earnings/(loss) per common share		0.04		0.04		(0.09	)		(0.09	)

Schedule of authorized but unissued common stock for possible future issuance

	March 31,		March 31,
	2017		2016
Warrants		3,778,002		4,009,669
Options		2,251,428		1,722,325
Series A Preferred Stock		—		933,333
Series E Preferred Stock		—		7,254,997
Convertible promissory note and interest		—		11,190,292
Total		6,029,430		25,110,616

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Contingencies and Commitments (Tables)

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of operating lease commitment

	Leased Property
Years ending December 31,	Costs
2017(9 months)		235,000
2018		266,000
2019		193,000
2020		199,000
Thereafter		84,000
Total	$	977,000

Schedule of licensed content commitment

Years ending December 31,	Content Costs
2017 (9 months)		1,454,000
2018		217,000
2019		217,000
Total	$	1,888,000

Schedule of acquisition of property commitment

Years ending December 31,	Property
2017 (9 months)		992,000
Total	$	992,000

Schedule of advertising and marketing expense commitment

Years ending December 31,	Marketing expenses
2017 (9 months)		106,000
Total	$	106,000

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Concentration, Credit and Other Risks (Tables)

3 Months Ended

Mar. 31, 2017

Risks and Uncertainties [Abstract]

Schedule of demand deposits

	March 31,		December 31,
	2017		2016
RMB denominated bank deposits with financial institutions in the PRC	$	474,523		1,566,107
US dollar denominated bank deposits with financial institutions in the PRC	$	177,570		670,951
HKD denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)		38,635		14,163
US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”)	$	296,197		1,403,000
US dollar denominated bank deposits with financial institutions in The United States of America (“USA”)	$	58,637		95,030

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

		Three Months Ended
		March 31,		March 31,
		2017		2016
NET SALES TO EXTERNAL CUSTOMERS
-Legacy YOD	$	787,328	$	1,269,726
-Wecast Service		32,377,023		-
Net sales		33,164,351		1,269,726
GROSS PROFIT
-Legacy YOD		27,493		353,946
-Wecast Service		3,794,479		-
Gross profit		3,821,972		353,946
		March 31,		December 31,
		2017		2016
TOTAL ASSETS
-Legacy YOD	$	35,955,219	$	36,975,911
-Wecast Service		33,714,959		14,448,702
-Unallocated assets		4,181,904		4,321,677
-Intersegment elimination		(203,033)		-
Total		73,649,049		55,746,290

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Organization and Principal Activities (Detail Textuals)		3 Months Ended
	Oct. 08, 2016 CNY (¥)	Mar. 31, 2017 Unit	Jan. 31, 2017
Organization And Principal Activities [Line Items]
Number of cloud-based categories and business units | Unit		3
Wide Angle Group Limited | BT Capital Global Limited
Organization And Principal Activities [Line Items]
Percentage of ownership of shares to be purchase			55.00%
Yanhua Agreement
Organization And Principal Activities [Line Items]
Minimal guarantee fee	¥ 13,000,000
Total price of the existing agreement to be transferred	¥ 13,000,000

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Going Concern and Management's Plans (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	[1]
Going Concern And Managements Plans [Abstract]
Net income (loss)	$ 1,638,467	$ (2,274,040)
Cash used in operations	(3,386,146)	$ (1,732,216)
Accumulated deficit	$ (113,456,389)		$ (115,669,268)

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Going Concern and Management's Plans (Detail Textuals 1) - USD ($)				1 Months Ended	3 Months Ended
	Nov. 11, 2016	Aug. 11, 2016	Jul. 06, 2016	Mar. 28, 2016	Mar. 31, 2017	Mar. 31, 2016
Going Concern And Managements Plans [Line Items]
Common stock financing				$ 10,000,000		$ 9,277,574
Common Stock Purchase Agreement | Seven Stars Works Co., Ltd
Going Concern And Managements Plans [Line Items]
Common stock financing			$ 4,000,000
Common Stock Purchase Agreement | Harvest Alternative Investment Opportunities SPC
Going Concern And Managements Plans [Line Items]
Common stock financing		$ 4,000,000
Common Stock Purchase Agreement | Sun Seven Stars Hong Kong Cultural Development Limited ("SSSHK")
Going Concern And Managements Plans [Line Items]
Common stock financing	$ 2,000,000

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VIE Structure and Arrangements (Details) - USD ($)		Mar. 31, 2017	Dec. 31, 2016		Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash		$ 1,054,142	$ 3,761,814	[1]	$ 12,035,320	$ 3,768,897
Accounts receivable, net		29,196,591	9,522,151	[1]
Prepaid expenses		347,968	375,944	[1]
Other current assets		6,925,012	3,581,822	[1]
Total current assets		39,045,586	19,319,577	[1]
Property and equipment, net		4,760,976	4,963,725	[1]
Intangible assets, net		425,113	453,242	[1]
Long term investments		6,635,483	6,654,664	[1]
Other non-current assets		57,846	112,643	[1]
Total assets		73,649,049	55,746,290	[1]
Current liabilities:
Accounts payable		27,231,787	13,341,680	[1]
Deferred revenue		609,466	1,350,054	[1]
Accrued other expenses		1,415,774	708,987	[1]
Other current liabilities		331,719	1,995,297	[1]
Accrued license content fees		1,189,453	1,236,661	[1]
Total current liabilities		38,680,631	24,015,354	[1]
Total liabilities		38,680,631	24,015,354	[1]
VIE
Current assets:
Cash		385,911	1,519,125
Accounts receivable, net		1,186,291	1,260,529
Prepaid expenses		62,881	30,455
Other current assets		1,798,108	191,427
Intercompany receivables due from the Company's subsidiaries	[2]	896,512	150,725
Total current assets		4,329,703	3,152,261
Property and equipment, net		206,106	196,677
Intangible assets, net		2,312	2,570
Long term investments		4,984,167	3,654,664
Other non-current assets		57,846	442,782
Total assets		9,580,134	7,448,954
Current liabilities:
Accounts payable		1,191,076	5,817
Deferred revenue		3,522	824,563
Accrued other expenses		248,226	268,074
Other current liabilities		413,327	394,314
Accrued license content fees		1,189,453	1,236,661
Intercompany payables due to the Company's subsidiaries	[2]	14,793,082	14,752,338
Total current liabilities		17,838,686	17,481,767
Total liabilities		$ 17,838,686	$ 17,481,767

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

[2] Intercompany receivables and payables are eliminated upon consolidation. The intercompany financing activities include the capital injection of $0.29 million to Sinotop Beijing in the three months period ended March 31, 2017.

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VIE Structure and Arrangements (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Variable Interest Entity [Line Items]
Revenue	$ 33,164,351	$ 1,269,726
Net income (loss)	2,212,879	(2,136,471)
VIE
Variable Interest Entity [Line Items]
Revenue	787,328	1,269,726
Net income (loss)	$ 258,760	$ (479,887)

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VIE Structure and Arrangements (Details 2) - USD ($)		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Variable Interest Entity [Line Items]
Net cash used in operating activities		$ (3,386,146)	$ (1,732,216)
Net cash used in investing activities		(5,473)
Net cash provided by financing activities		8,745	10,000,000
VIE
Variable Interest Entity [Line Items]
Net cash used in operating activities		(1,322,729)	(603,884)
Net cash used in investing activities
Net cash provided by financing activities	[1]	$ 189,515	$ 21,855

[1] Intercompany receivables and payables are eliminated upon consolidation. The intercompany financing activities include the capital injection of $0.29 million to Sinotop Beijing in the three months period ended March 31, 2017.

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VIE Structure and Arrangements (Detail Textuals) $ in Thousands, ¥ in Millions		3 Months Ended
	Apr. 05, 2016 CNY (¥)	Mar. 31, 2017 USD ($)	Mar. 31, 2017 CNY (¥)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 CNY (¥)	Jan. 31, 2016 USD ($)	Jan. 31, 2016 CNY (¥)
SSF
Variable Interest Entity [Line Items]
Capital injection to SSF		$ 290
SSF | Lan Yang
Variable Interest Entity [Line Items]
Percentage of variable interest entity	99.00%
SSF | Yun Zhu
Variable Interest Entity [Line Items]
Percentage of variable interest entity	1.00%
Contractual agreements | Sinotop Beijing
Variable Interest Entity [Line Items]
Contribution of equity ownership						100.00%	100.00%
Contractual agreements | Sinotop Beijing | YOD WFOE
Variable Interest Entity [Line Items]
Registered capital		3,300	¥ 21.8		¥ 21.8
Contractual agreements | SSF | YOD WFOE
Variable Interest Entity [Line Items]
Registered capital		$ 4,200	¥ 27.6			$ 7,500	¥ 50.0
Technical service agreement | Sinotop Beijing | YOD WFOE
Variable Interest Entity [Line Items]
Percentage of service fee received		30.00%	30.00%
Technical service agreement | SSF | Maximum | YOD WFOE
Variable Interest Entity [Line Items]
Percentage of service fee received		30.00%	30.00%
Technical service agreement | SSF | Minimum | YOD WFOE
Variable Interest Entity [Line Items]
Percentage of service fee received		20.00%	20.00%
Management services agreement | Sinotop Beijing | YOD Hong Kong
Variable Interest Entity [Line Items]
Percentage of service fee received		100.00%	100.00%
Term of agreement		20 years
Loan Agreement | YOD WFOE
Variable Interest Entity [Line Items]
Loans payable | ¥	¥ 19.8
Loan Agreement | Yun Zhu
Variable Interest Entity [Line Items]
Loans payable
Loan Agreement | Nominee Shareholders
Variable Interest Entity [Line Items]
Loans payable | ¥	¥ 0.2
Loan Agreement | SSF | Lan Yang
Variable Interest Entity [Line Items]
Registered capital				$ 4,200	27.6
Loans payable				4,200	¥ 27.6
Loan Agreement | SSF | Yun Zhu
Variable Interest Entity [Line Items]
Loans payable

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Acquisition (Detail Textuals) - USD ($)	1 Months Ended
	Jan. 30, 2017	Mar. 31, 2017	Jan. 31, 2017
Business Acquisition [Line Items]
Principal amount of convertible note		$ 50,000,000
Reduction to additional paid in capital due to SVG note		$ 50,000,000
Sun Video Group HK Limited | BT Capital Global Limited
Business Acquisition [Line Items]
Cash consideration for exchange	$ 800,000
Principal amount of convertible note	$ 50,000,000
Conversion price of note convertible into preferred stock shares	$ 1.50
Expected revenue to generate	$ 250,000,000
Expected profit performance guarantee	15,000,000
Cumulative threshold limit of net income achieve within 3 years	$ 50,000,000
Percentage of cumulative net income payment	50.00%
Wide Angle Group Limited | BT Capital Global Limited
Business Acquisition [Line Items]
Percentage of ownership of shares to be purchase			55.00%

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Accounts Receivable (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accounts Receivable [Abstract]
Accounts receivable, gross:	$ 32,040,818	$ 12,350,947
Less: allowance for doubtful accounts	(2,844,227)	(2,828,796)
Accounts receivable, net	$ 29,196,591	$ 9,522,151	[1]

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Accounts Receivable (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at the beginning of the period	$ (2,828,796)	$ (3,672)
Additions charged to bad debt expense	(15,431)	(2,825,124)
Write-off of bad debt allowance
Balance at the end of the period	$ (2,844,227)	$ (2,828,796)

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Property and Equipment (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 5,887,253	$ 6,037,773
Less: accumulated depreciation	(1,126,277)	(1,074,048)
Property and Equipment, net	4,760,976	4,963,725	[1]
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,070,443	1,061,762
Vehicle
Property, Plant and Equipment [Line Items]
Total property and equipment	144,544	267,022
Office Building
Property, Plant and Equipment [Line Items]
Total property and equipment	3,969,632	3,948,058
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 702,634	$ 760,931

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Property and Equipment (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 168,082	$ 34,000

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Intangible Assets (Details) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount		$ 4,015,664	$ 4,015,664
Total amortizing intangible assets, accumulated amortization		(1,716,812)	(1,688,683)
Total amortizing intangible assets, impairment loss		(2,018,622)	(2,018,628)
Total amortizing intangible assets, net balance		280,224	308,353
Total intangible assets, gross carrying amount		4,160,553	4,160,553
Total intangible assets, accumulated amortization		(1,716,811)	(1,688,684)
Total intangible assets, impairment loss		(2,018,628)	(2,018,628)
Total intangible assets, net balance		425,113	453,242	[1]
Website name
Intangible Assets [Line Items]
Indefinite lived intangible assets, carrying amount		134,290	134,290
Total intangible assets, accumulated amortization
Total intangible assets, impairment loss
Total intangible assets, net balance		134,290	134,290
Patent
Intangible Assets [Line Items]
Indefinite lived intangible assets, carrying amount		10,599	10,599
Total intangible assets, accumulated amortization
Total intangible assets, impairment loss
Total intangible assets, net balance		10,599	10,599
Charter/ Cooperation agreements
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount	[2]	2,755,821	2,755,821
Total amortizing intangible assets, accumulated amortization	[2]	(909,257)	(909,257)
Total amortizing intangible assets, impairment loss	[2]	(1,846,564)	(1,846,564)
Total amortizing intangible assets, net balance	[2]
Software and licenses
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount		267,991	267,991
Total amortizing intangible assets, accumulated amortization		(244,585)	(241,932)
Total amortizing intangible assets, impairment loss
Total amortizing intangible assets, net balance		23,406	26,059
Patent And Trademark
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount		92,965	92,965
Total amortizing intangible assets, accumulated amortization		(39,943)	(39,943)
Total amortizing intangible assets, impairment loss
Total amortizing intangible assets, net balance		53,022	53,022
Website and mobile app development
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount	[3]	593,193	593,193
Total amortizing intangible assets, accumulated amortization	[3]	(421,129)	(421,129)
Total amortizing intangible assets, impairment loss	[3]	(172,064)	(172,064)
Total amortizing intangible assets, net balance	[3]
Workforce
Intangible Assets [Line Items]
Total amortizing intangible assets, gross carrying amount	[4]	305,694	305,694
Total amortizing intangible assets, accumulated amortization	[4]	(101,898)	(76,422)
Total amortizing intangible assets, impairment loss	[4]
Total amortizing intangible assets, net balance	[4]	$ 203,796	$ 229,272

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

[2] During the fourth quarter of 2016, the Company determined that the Charter/Cooperation agreements will not serve the business or generate future cash flow. As no future cash flows will be generated from the Charter/Cooperation agreements, the Company estimated the fair value of the Charter/Cooperation agreements to be nil as of December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from Charter/Cooperation agreements of $1,846,000 was recognized in 2016 to write off the entire book value of the Charter/Cooperation agreements.

[3] Considering a new mobile app is being developed to be put into market in October, 2016, the Company determined that the future cash flows genereated from the old mobile app was nil. In accordance with ASC 350, Intangibles Goodwill and Other, recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. The Company estimated the fair value of this intangible asset to be nil as of March 31, 2017 and December 31, 2016. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from mobile app development of $172,000 was recognized in 2016 to write off the entire book value of the old mobile app.

[4] On April 1, 2016, Wecast Network entered into an agreement with Mr. Liu Changsheng, under which Wecast Network agreed to pay Mr. Liu Changsheng cash consideration of $187,653 and 66,500 shares of restricted shares with a six month restriction period and a fair value of $121,695 in exchange for a workforce of 10 personnel experienced in programing content mobile apps. All 10 personnel enter into three year employment contracts with Wecast Network effective from April 1, 2016. The Company also acquired certain laptop and desktop computers with fair value of $3,655. According to the agreement, 30% of the cash consideration is due upon the signing of the agreement, 20% is due 2 months after the signing of the agreement and 50% is due 6 months after the signing of the agreement. Cash consideration of $93,825 has been paid as of March 31, 2017, and $93,828 was paid on October 31, 2016. If any of three key staff, as defined, terminated their employment with Wecast Network during the first 12 months of employment, Wecast Network 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. Wecast Network has accounted for the transaction as an asset acquisition in which Wecast Network 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. The Company recorded amortization expense related to our amortizing intangible assets of approximately $28,128 and $62,193 for the three months ended March 31, 2017 and March 31, 2016 respectively, which included the amortization expense of the workforce acquired as stated above.

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Intangible Assets (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017(9 months)	$ 90,277
2018	118,254
2019	35,794
2020 and thereafter	35,899
Total amortization to be recognized	$ 280,224	$ 308,353

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Intangible Assets (Detail Textuals) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Oct. 31, 2016	Apr. 30, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Intangible Assets [Line Items]
Cash consideration			$ 76,045	$ 10,000,000
Amortization expense of workforce acquired			28,129	$ 63,000
Mobile app development
Intangible Assets [Line Items]
Impairment loss recognized from intangible assets					$ 172,000
Charter/ Cooperation agreements
Intangible Assets [Line Items]
Impairment loss recognized from intangible assets					$ 1,846,000
Mr. Liu Changsheng | Workforce
Intangible Assets [Line Items]
Cash consideration	$ 93,828	$ 187,653	$ 93,825
Fair value of restricted shares granted		$ 121,695
Restricted shares		66,500
Restriction period for restricted shares		6 months
Fair value of intangible assets		$ 3,655
Cash consideration due after signing of agreement, percentage		30.00%
Cash consideration due in 2 months, percentage		20.00%
Cash consideration due in 6 months, percentage		50.00%
Payment of default penalty		$ 129,180
Intangible assets amortized period		3 years

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Long-term Investments (Details) - USD ($)		Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Cost method investment		$ 6,174,235	$ 6,156,985
Topsgame
Debt Instrument [Line Items]
Cost method investment	[1]	3,174,235	3,156,985
Frequency
Debt Instrument [Line Items]
Cost method investment	[2]	$ 3,000,000	$ 3,000,000

[1] Investment in Topsgame 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. 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 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, based on the acquisition cost of Game IP Rights of approximately $2.7 million and accounts for the investment by the cost method. On September 14, 2016, SSF increased its investment in Topsgame by RMB 3,900,000 (approximately $584,000) and maintained its 13% equity ownership of Topsgame. The investment continued to be accounted for using the cost method.

[2] Investment in Frequency 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 million. The 8,566,271 Series A Preferred Stock represent 9% 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 accounts for the investment by the cost method. There were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of our cost method investments, accordingly the fair value of our cost method investments are not estimated.

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Long-term Investments (Details 1)		1 Months Ended		3 Months Ended
		Oct. 31, 2016 USD ($)	Oct. 31, 2016 CNY (¥)	Mar. 31, 2017 USD ($)
Schedule Of Equity Method Investment [Roll Forward]
Beginning balance				$ 497,679
Capital increase
Gain/(Loss) on investment				(43,746)
Impairment loss				(38,448)
Foreign currency translation adjustments				45,763
Ending balance				461,248
Wecast Internet
Schedule Of Equity Method Investment [Roll Forward]
Beginning balance	[1]			132,782
Capital increase		$ 149,750	¥ 1,000,000		[1]
Gain/(Loss) on investment	[1]			(37,382)
Impairment loss	[1]
Foreign currency translation adjustments	[1]			3,804
Ending balance	[1]			99,204
Hua Cheng
Schedule Of Equity Method Investment [Roll Forward]
Beginning balance	[2]			364,897
Capital increase	[2]
Gain/(Loss) on investment	[2]			(6,364)
Impairment loss	[2]			(38,448)
Foreign currency translation adjustments	[2]			41,959
Ending balance	[2]			362,044
Shandong Media
Schedule Of Equity Method Investment [Roll Forward]
Beginning balance	[3]
Capital increase	[3]
Gain/(Loss) on investment	[3]
Impairment loss	[3]
Foreign currency translation adjustments	[3]
Ending balance	[3]

[1] Investment in Wecast Internet In October 2016, the Company's subsidiary, YOU On Demand (Asia) Ltd., invested RMB 1,000,000 (approximately $149,750) in Wecast Internet Limited ("Wecast Internet") and held its 50% equity ownership.

[2] Investment in Hua Cheng As of the years ended March 31, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity method.

[3] Investment in Shandong Media As of the years ended March 31, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the equity method. The investment was fully impaired as of March 31, 2017 and December 31, 2016.

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Long Term Investments (Detail Textuals)					1 Months Ended				3 Months Ended
		Sep. 14, 2016 USD ($)	Sep. 14, 2016 CNY (¥)	Jul. 03, 2016 CNY (¥)	Oct. 31, 2016 USD ($)	Oct. 31, 2016 CNY (¥)	Apr. 30, 2016 USD ($) $ / shares shares	Mar. 28, 2016 USD ($)	Mar. 31, 2017 USD ($)		Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)		Apr. 15, 2016 USD ($)	Apr. 13, 2016 USD ($)	Apr. 13, 2016 CNY (¥)
Debt Instrument [Line Items]
Acquisition of game IP rights in cash paid									$ 6,174,235			$ 6,156,985
Total purchase price								$ 10,000,000			$ 9,277,574
Long term investments									6,635,483			6,654,664	[1]
Increase in investment
Impairment of equity method investments									38,448
Shandong Media
Debt Instrument [Line Items]
Increase in investment	[2]
Impairment of equity method investments	[2]
Hua Cheng
Debt Instrument [Line Items]
Increase in investment	[3]
Impairment of equity method investments	[3]								38,448
Wecast Internet
Debt Instrument [Line Items]
Percentage of equity ownership					50.00%	50.00%
Increase in investment					$ 149,750	¥ 1,000,000				[4]
Impairment of equity method investments	[4]
Topsgame
Debt Instrument [Line Items]
Acquisition of game IP rights in cash paid	[5]								3,174,235			3,156,985
Increase in investment | ¥				¥ 30,000,000
Topsgame | SSF
Debt Instrument [Line Items]
Percentage of equity ownership		13.00%	13.00%
Increase in investment		$ 584,000	¥ 3,900,000
Frequency
Debt Instrument [Line Items]
Acquisition of game IP rights in cash paid	[6]								$ 3,000,000			$ 3,000,000
Sinotop Beijing | Shandong Media
Debt Instrument [Line Items]
Percentage of equity ownership									30.00%
Sinotop Beijing | Hua Cheng
Debt Instrument [Line Items]
Percentage of equity ownership									39.00%			39.00%
Game IP Rights | SSS | SSF
Debt Instrument [Line Items]
Acquisition of game IP rights in cash															$ 2,700,000	¥ 18,000,000
Game IP Rights | Topsgame
Debt Instrument [Line Items]
Fair value of investment														$ 2,700,000
Capital Increase Agreement | Topsgame | SSF
Debt Instrument [Line Items]
Percentage of equity ownership														13.00%
Series A Preferred Stock Purchase Agreement | Frequency
Debt Instrument [Line Items]
Purchase of shares of Series A Preferred Stock | shares							8,566,271
Percentage of equity ownership							9.00%
Total purchase price							$ 3,000,000
Preferred stock non-cumulative dividends rate per share | $ / shares							$ 0.02548
Preferred stock convertible into common stock basis							1:1
Preferred stock liquidation preference per share | $ / shares							$ 0.42467
Cost of the investment in Frequency							$ 3,000,000

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

[2] Investment in Shandong Media As of the years ended March 31, 2017 and December 31, 2016, the Company held 30% equity ownership in Shandong Media, and accounts for the investment by the equity method. The investment was fully impaired as of March 31, 2017 and December 31, 2016.

[3] Investment in Hua Cheng As of the years ended March 31, 2017 and December 31, 2016, the Company held 39% equity ownership in Hua Cheng, and accounted for the investment by the equity method.

[4] Investment in Wecast Internet In October 2016, the Company's subsidiary, YOU On Demand (Asia) Ltd., invested RMB 1,000,000 (approximately $149,750) in Wecast Internet Limited ("Wecast Internet") and held its 50% equity ownership.

[5] Investment in Topsgame 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. 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 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, based on the acquisition cost of Game IP Rights of approximately $2.7 million and accounts for the investment by the cost method. On September 14, 2016, SSF increased its investment in Topsgame by RMB 3,900,000 (approximately $584,000) and maintained its 13% equity ownership of Topsgame. The investment continued to be accounted for using the cost method.

[6] Investment in Frequency 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 million. The 8,566,271 Series A Preferred Stock represent 9% 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 accounts for the investment by the cost method. There were no identified events or changes in circumstances that may have had a significant adverse effect on the fair value of our cost method investments, accordingly the fair value of our cost method investments are not estimated.

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Stockholder's Equity (Detail Textuals) - USD ($)					1 Months Ended			3 Months Ended
	Nov. 11, 2016	Aug. 12, 2016	Aug. 11, 2016	Jul. 06, 2016	Nov. 17, 2016	Jul. 19, 2016	Mar. 28, 2016	Mar. 31, 2017	Mar. 31, 2016
Stockholders Equity [Line Items]
Exercise price of warrants								$ 2.20
Aggregate purchase price							$ 10,000,000		$ 9,277,574
Amended SSS Purchase Agreement | SSS
Stockholders Equity [Line Items]
Number of common stock share purchased							4,545,455
Shares issued, price per share (in dollars per share)							$ 2.20
Exercise price of warrants							$ 2.75
Aggregate purchase price							$ 10,000,000
Acquire additional common stock							1,818,182
Seven Stars Works Co., Ltd | Common Stock Purchase Agreement
Stockholders Equity [Line Items]
Number of common stock share purchased				2,272,727
Shares issued, price per share (in dollars per share)				$ 1.76
Aggregate purchase price				$ 4,000,000
Proceeds from issuance of common stock						$ 4,000,000
Number of shares issued						2,272,727
Harvest Alternative Investment Opportunities SPC | Common Stock Purchase Agreement
Stockholders Equity [Line Items]
Number of common stock share purchased			2,272,727
Shares issued, price per share (in dollars per share)			$ 1.76
Aggregate purchase price			$ 4,000,000
Proceeds from issuance of common stock		$ 4,000,000
Number of shares issued		2,272,727
Sun Seven Stars Hong Kong Cultural Development Limited ("SSSHK") | Common Stock Purchase Agreement
Stockholders Equity [Line Items]
Number of common stock share purchased	1,136,365
Shares issued, price per share (in dollars per share)	$ 1.76
Aggregate purchase price	$ 2,000,000
Proceeds from issuance of common stock					$ 2,000,000
Number of shares issued					1,136,365

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Fair Value Measurements (Details) - Warrants	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.91%	0.70%
Expected volatility	55.00%	55.00%
Expected term	5 months 1 day	8 months 1 day
Expected dividend yield	0.00%	0.00%
Fair value of warrant liabilities valuation method	Black Scholes	Monte Carlo

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Fair Value Measurements (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Liabilities, Fair Value Disclosure [Abstract]
Warrant liabilities (see Note 13)	$ 340,901	$ 70,785
Warrants | Fair value on recurring basis | Level 1
Liabilities, Fair Value Disclosure [Abstract]
Warrant liabilities (see Note 13)
Warrants | Fair value on recurring basis | Level 2
Liabilities, Fair Value Disclosure [Abstract]
Warrant liabilities (see Note 13)
Warrants | Fair value on recurring basis | Level 3
Liabilities, Fair Value Disclosure [Abstract]
Warrant liabilities (see Note 13)	340,901	70,785
Warrants | Fair value on recurring basis | Total Fair Value
Liabilities, Fair Value Disclosure [Abstract]
Warrant liabilities (see Note 13)	$ 340,901	$ 70,785

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Fair Value Measurements (Details 2) - Warrants - Fair value on recurring basis - Level 3	3 Months Ended
	Mar. 31, 2017 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Warrant liabilities January 1, 2017	$ 70,785
Settlements
Change in Fair Value	270,116
Warrant liabilities March 31, 2017	$ 340,901

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Related Party Transactions (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2014	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016		May 10, 2012
Related Party Transaction [Line Items]
Loan from related parties		$ 2,173,891			[1]
Principal amount of convertible note		50,000,000
Mr. Shane McMahon | $3.0 Million Convertible Note
Related Party Transaction [Line Items]
Loan from related parties						$ 3,000,000
Principal amount of convertible note						$ 3,000,000
Interest rate of convertible note						4.00%
Amount recognized as beneficial conversion feature	$ 2,126,000
Maturity date of the note	Dec. 31, 2015
Interest expenses related to note		30,000	$ 30,000
Interest payable		$ 497,425
Mr. Shane McMahon | $3.0 Million Convertible Note | Series E Preferred Stock
Related Party Transaction [Line Items]
Conversion price of note convertible into preferred stock shares	$ 1.75			$ 1.50

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Related Party Transactions (Detail Textuals 1)	Mar. 31, 2017 USD ($)
BJSS
Related Party Transaction [Line Items]
Accounts receivable due	$ 3,800,000
ZHV | Shanghai Wecast Marketing Projection Ltd
Related Party Transaction [Line Items]
Intercompany lending balances	165,234
Global AAC Ltd | YOD Hong Kong
Related Party Transaction [Line Items]
Intercompany lending balances	270,000
Sun News G HK Ltd | YOD Hong Kong
Related Party Transaction [Line Items]
Intercompany lending balances	180,000
SHWAP | ZHV
Related Party Transaction [Line Items]
Intercompany lending balances	1,159,537.92
SHWAP | Shanghai Blue World Investment Management Consulting Limited ("SVG WFOE")
Related Party Transaction [Line Items]
Intercompany lending balances	220,312
Wide Angle China Operation Holdings Limited | M.Y. Products LLC
Related Party Transaction [Line Items]
Intercompany lending balances	155,500
Sun Seven Stars Hong Kong Cultural Development Limited ("SSSHK") | M.Y. Products LLC
Related Party Transaction [Line Items]
Intercompany lending balances	$ 1,370,000

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Related Party Transactions (Detail Textuals 2) ¥ in Millions	1 Months Ended	3 Months Ended
	Sep. 19, 2016 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)		Apr. 13, 2016 USD ($)	Apr. 13, 2016 CNY (¥)
Related Party Transaction [Line Items]
Total accrued license content fees due to Hua Cheng		$ 1,189,453		$ 1,236,661	[1]
Amount due to related parties		2,173,891			[1]
Sun Video Group HK Limited | M.Y. Products LLC
Related Party Transaction [Line Items]
Percentage of ownership of shares to be purchase	51.00%
Worth of common stock to exchange	$ 50,000,000
Cash consideration for exchange	800,000
Good faith deposit amount	800,000
Payment of deposit to acquiree	$ 650,000
Hua Cheng
Related Party Transaction [Line Items]
Licensed content fees			$ 56,000
Total accrued license content fees due to Hua Cheng				$ 54,000
SSF | SSS | Game Right Assignment Agreement
Related Party Transaction [Line Items]
Acquisition of game IP rights in cash						$ 2,700,000	¥ 18

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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SSS Agreements (Detail Textuals) - USD ($)			1 Months Ended	3 Months Ended
	Nov. 11, 2016	Jul. 06, 2016	Mar. 28, 2016	Mar. 31, 2017	Mar. 31, 2016
Agreement [Line Items]
Aggregate purchase price			$ 10,000,000		$ 9,277,574
Exercise price of warrants				$ 2.20
Recorded additional paid-in capital for warrants					$ 722,426
Common Stock Purchase Agreement | Seven Stars Works Co., Ltd
Agreement [Line Items]
Number of common stock share purchased		2,272,727
Purchase price per share (in dollars per share)		$ 1.76
Aggregate purchase price		$ 4,000,000
Common Stock Purchase Agreement | Sun Seven Stars Hong Kong Cultural Development Limited ("SSSHK")
Agreement [Line Items]
Number of common stock share purchased	1,136,365
Purchase price per share (in dollars per share)	$ 1.76
Aggregate purchase price	$ 2,000,000
Common Stock
Agreement [Line Items]
Number of common stock share purchased				29,585	4,545,455
Aggregate purchase price				$ 30	$ 4,545
Amended SSS Purchase Agreement | SSS
Agreement [Line Items]
Number of common stock share purchased			4,545,455
Purchase price per share (in dollars per share)			$ 2.20
Interest rate of convertible note			0.56%
Aggregate purchase price			$ 10,000,000
Term of warrants			2 years
Acquire additional common stock			1,818,182
Exercise price of warrants			$ 2.75
Percentage of outstanding common stock owned			19.99%
Proceeds from issuance of shares			$ 10,000,000
Issuance cost, net			411,000
Recorded additional paid-in capital for warrants			725,000
Amended SSS Purchase Agreement | SSS | Common Stock
Agreement [Line Items]
Fair value of common stock/equity			8,227,000
Amended SSS Purchase Agreement | SSS | Warrants
Agreement [Line Items]
Fair value of common stock/equity			$ 673,000

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SSS Agreements (Detail Textuals 1) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
	Jun. 27, 2016	Mar. 28, 2016	Mar. 31, 2017	Dec. 31, 2016
Agreement [Line Items]
Amortized SSS Notes			$ 472,450
Revised Content Agreement | SSS | Convertible promissory note
Agreement [Line Items]
Principal amount of SSS notes		$ 17,718,000
Percentage of outstanding common stock owned		19.99%
SSS Note converted to common stock shares	9,208,860
Debt issuance costs		$ 131,000
Amortized SSS Notes				$ 123,000
Effective conversion price of the SSS Note		$ 1.91
Unamortized issuance costs	$ 8,000
Accrued interest expense	$ 25,000
Fair value of common stock per stock		$ 1.81

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SSS Agreements (Detail Textuals 2) - USD ($)			1 Months Ended			3 Months Ended		12 Months Ended
	Nov. 10, 2016	Apr. 05, 2016	Jun. 28, 2016	Dec. 31, 2015	Dec. 21, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Agreement [Line Items]
Net income						$ 2,212,879	$ (2,136,471)
Common stock, par value (in dollars per share)						$ 0.001		$ 0.001	[1]
Earn-out share award expense								$ 13,700,000
SSF | Lan Yang
Agreement [Line Items]
Percentage of variable interest entity		99.00%
SSF | Yun Zhu
Agreement [Line Items]
Percentage of variable interest entity		1.00%
Amended Tianjin Agreement | Tianjin Enternet | Board
Agreement [Line Items]
Earn-out share award	10,000,000			15,000,000
Common stock, par value (in dollars per share)	$ 0.001
Amended Tianjin Agreement | SSS
Agreement [Line Items]
Percentage of outstanding common stock owned			19.99%
Amended Tianjin Agreement | SSF | Tianjin Enternet
Agreement [Line Items]
Contribution of equity ownership					100.00%
Receive shares of common stock, term					3 years
Per year receive shares of common stock					5,000,000
Amended Tianjin Agreement | SSF | Earn-out provisions 2016 | Tianjin Enternet
Agreement [Line Items]
Earn-out provision homes/users passed					$ 50,000,000
Net income					4,000,000
Amended Tianjin Agreement | SSF | Earn-out provisions 2017 | Tianjin Enternet
Agreement [Line Items]
Earn-out provision homes/users passed					100,000,000
Net income					6,000,000
Amended Tianjin Agreement | SSF | Earn-out provisions 2018 | Tianjin Enternet
Agreement [Line Items]
Earn-out provision homes/users passed					150,000,000
Net income					$ 8,000,000

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Warrant Liabilities (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016		Aug. 30, 2012
Warrant Liabilities [Abstract]
Number of shares called by warrants				977,063
Warrant liabilities	$ 340,901	$ 70,785	[1]	$ 1,525,000
Warrant liability recorded at fair value	340,901	$ 70,785
Gain on revaluation of warrants	$ 270,116

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")

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Share-Based Payments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employees and directors share-based payments	$ 71,428	$ 139,000

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Share-Based Payments (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Options Outstanding
Outstanding at January 1, 2017	2,101,428
Granted	150,000
Exercised
Expired
Forfeited
Outstanding at March 31, 2017	2,251,428
Vested and expected to vest as of March 31, 2017	2,251,428
Options exercisable at March 31, 2017(vested)	1,687,051
Weighted Average Exercise Price
Outstanding at January 1, 2017	$ 2.42
Granted	1.62
Outstanding at March 31, 2017	2.33
Vested and expected to vest as of March 31, 2017	2.33
Options exercisable at March 31, 2017 (vested)	$ 2.80
Weighted Average Remaining Contractual Life (Years)
Outstanding at March 31, 2017	4 years 8 months 1 day	4 years 8 months 1 day
Vested and expected to vest as of March 31, 2017	4 years 9 months 18 days
Options exercisable at March 31, 2017 (vested)	3 years 4 months 17 days
Aggregated Intrinsic Value
Outstanding at March 31, 2017
Vested and expected to vest as of March 31, 2017
Options exercisable at March 31, 2017 (vested)

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Share-Based Payments (Details 2)	Jan. 04, 2017
Compensation and Retirement Disclosure [Abstract]
Method used	Black Scholes
Risk-free interest rate, minimum	2.26%
Risk-free interest rate, maximum	2.34%
Expected volatility	55.00%
Expected term	5 years 10 months 17 days
Expected dividend yield	0.00%

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Share-Based Payments (Details 3) - $ / shares		3 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable		3,778,002	3,783,002
Exercise price of warrants		$ 2.20
2012 August Financing Warrants
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable	[1]	536,250	536,250
Exercise price of warrants	[1]	$ 1.50
Expiration Date	[1]	08/30/17
2013 Broker Warrants (Series D Financing)
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable		223,571	228,571
Exercise price of warrants		$ 1.75
Expiration Date		07/05/18
2013 Broker Warrants (Convertible Note)
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable		114,285	114,285
Exercise price of warrants		$ 1.75
Expiration Date		11/04/18
2014 Broker Warrants (Series E Financing)
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable		1,085,714	1,085,714
Exercise price of warrants		$ 1.75
Expiration Date		01/31/19
2016 Warrants to SSS (Note 12)
Class of Warrant or Right [Line Items]
Number of Warrants Outstanding and Exercisable		1,818,182	1,818,182
Exercise price of warrants		$ 2.75
Expiration Date		03/28/18

[1] The warrants are classified as derivative liabilities as disclosed in Note 12.

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Share-Based Payments (Detail Textuals) - USD ($)			1 Months Ended	3 Months Ended
	Mar. 16, 2017	Jan. 04, 2017	Mar. 01, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 03, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding to purchase shares of common stock				2,251,428		2,101,428
Warrants outstanding to purchase shares of common stock				3,778,002		3,783,002
Unrecognized compensation expense related to non-vested share options				$ 501,000
Weighted average period for recognition related to non-vested share options				2 years 1 month 24 days
Total fair value of vested shares					$ 16,000
Weighted average exercise price of warrants				$ 2.20
Stock options issued to employees				150,000
SSS
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding to purchase shares of common stock				1,818,182
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options issued to employees	35,000	70,000	45,000
Stock options grant date fair value	$ 36,750	$ 47,415	$ 45,443
2010 Stock Incentive Plan ("the Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance							4,000,000
Number of options available for issuance				1,069,465
Weighted average remaining life of warrants				1 year 2 months 9 days

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Earnings (Loss) Per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net earnings/(loss) attributable to common stockholders, Basic	$ 2,212,879	$ (2,136,471)
Net earnings/(loss) attributable to common stockholders, Diluted	$ 2,212,879	$ (2,136,471)
Average equivalent shares
Weighted-average common shares outstanding, Basic	55,382,002	24,484,562
Weighted-average common shares outstanding, Diluted	60,715,721	24,484,562
Convertible preferred shares	2,150,237
Dilutive effect of convertible promissory notes	3,183,482
Total average equivalent shares, Basic	55,382,002	24,484,562
Total average equivalent shares, Diluted	60,715,721	24,484,562
Per-share amounts
Earnings/(loss) per common share, Basic	$ 0.04	$ (0.09)
Earnings/(loss) per common share, Diluted	$ 0.04	$ (0.09)

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Earnings (Loss) Per Common Share (Details 1) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	6,029,430	25,110,616
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	3,778,002	4,009,669
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,251,428	1,722,325
Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		933,333
Series E Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		7,254,997
Convertible promissory note and interest
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		11,190,292

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Income Taxes (Detail Textuals)	3 Months Ended
	Mar. 31, 2017 USD ($)
Operating Loss Carryforwards [Line Items]
Deferred tax assets valuation allowance, percentage	100.00%
Valuation allowance increased	$ 400,000
Unrecorded tax benefits	0
U.S domestic
Operating Loss Carryforwards [Line Items]
Cumulative tax loss carryforwards	28,900,000
Foreign
Operating Loss Carryforwards [Line Items]
Cumulative tax loss carryforwards	$ 17,500,000

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Contingencies and Commitments (Details)	Mar. 31, 2017 USD ($)
Years ending December 31,
2017(9 months)	$ 235,000
2018	266,000
2019	193,000
2020	199,000
Thereafter	84,000
Total	$ 977,000

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Contingencies and Commitments (Details 1) - Licensed Content Commitment	Mar. 31, 2017 USD ($)
Years ending December 31,
2017 (9 months)	$ 1,454,000
2018	217,000
2019	217,000
Total	$ 1,888,000

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Contingencies and Commitments (Details 2) - Property Commitment	Mar. 31, 2017 USD ($)
Years ending December 31,
2017 (9 months)	$ 992,000
Total	$ 992,000

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Contingencies and Commitments (Details 3) - Marketing Expense Commitment	Mar. 31, 2017 USD ($)
Years ending December 31,
2017 (9 months)	$ 106,000
Total	$ 106,000

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Contingencies and Commitments (Detail Textuals) - Beijing Kuntin Taiming Investment Management Co., Ltd - Building ¥ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($) Acquisition	Mar. 31, 2017 CNY (¥) Acquisition
Loss Contingencies [Line Items]
Total consideration for the property acquisition	$ 4,239,000	¥ 27.4
Payments to acquire buildings	$ 3,247,000	¥ 20.5
Number of acquisitions	2	2

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Concentration, Credit and Other Risks (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
RMB | PRC
Revenue, Major Customer [Line Items]
Bank deposits with financial institutions	$ 474,523	$ 1,566,107
RMB | Hong Kong Special Administrative Region (HK SAR)
Revenue, Major Customer [Line Items]
Bank deposits with financial institutions	38,635	14,163
US | PRC
Revenue, Major Customer [Line Items]
Bank deposits with financial institutions	177,570	670,951
US | Hong Kong Special Administrative Region (HK SAR)
Revenue, Major Customer [Line Items]
Bank deposits with financial institutions	296,197	1,403,000
US | Cayman Islands (Cayman)
Revenue, Major Customer [Line Items]
Bank deposits with financial institutions	$ 58,637	$ 95,030

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Concentration, Credit and Other Risks (Detail Textuals)		1 Months Ended	3 Months Ended
	Oct. 08, 2016 CNY (¥)	Dec. 30, 2016 CNY (¥)	Mar. 31, 2017 Customer	Mar. 31, 2016 Customer	Jan. 31, 2017
Wide Angle Group Limited | BT Capital Global Limited
Revenue, Major Customer [Line Items]
Percentage of ownership of shares to be purchase					55.00%
Yanhua Agreement
Revenue, Major Customer [Line Items]
Minimal guarantee fee	¥ 13,000,000
Total price of the existing agreement to be transferred	13,000,000
First installments of agreement		¥ 6,500,000
Second installments of agreement to be paid in three months from the date when the first installment	6,500,000
Amount recognized as revenue of the first installment	¥ 6,500,000
Major Customers | Revenue
Revenue, Major Customer [Line Items]
Description of percentage of revenue for major customer			more than 10%	more than 10%
Number of customers | Customer			1	2
Major Customers | Accounts receivables
Revenue, Major Customer [Line Items]
Description of percentage of revenue for major customer			more than 10%	more than 10%
Number of customers | Customer			3	4

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Concentration, Credit and Other Risks (Detail Textuals 1)	3 Months Ended		12 Months Ended
	Mar. 31, 2017 USD ($) Supplier	Mar. 31, 2016 Supplier	Dec. 31, 2016 USD ($)
Revenue, Major Customer [Line Items]
Insured deposit | $	$ 371,824		$ 384,515
Licensed Content Commitment
Revenue, Major Customer [Line Items]
Cost of Goods Sold | $			$ 17,700,000
Major Suppliers | Cost of revenues
Revenue, Major Customer [Line Items]
Description of percentage of revenue for major supplier	more than 10%	more than 10%
Number of suppliers | Supplier	2	4
Major Suppliers | Accounts payable
Revenue, Major Customer [Line Items]
Description of percentage of revenue for major supplier	more than 10%	more than 10%
Number of suppliers | Supplier	1	2

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Defined Contribution Plan (Detail Textuals) - USD ($)

1 Months Ended

3 Months Ended

Dec. 31, 2011

Mar. 31, 2017

Mar. 31, 2016

Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]

Employer matching contribution, percent

100.00%

Employer matching contribution, description

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.

Employer matching contribution, amount

$ 1,233

$ 1,000

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Segment Reporting (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
NET SALES TO EXTERNAL CUSTOMERS
Net sales	$ 33,164,351	$ 1,269,726
GROSS PROFIT
Gross profit	3,821,972	353,946
Legacy YOD
NET SALES TO EXTERNAL CUSTOMERS
Net sales	787,328	1,269,726
GROSS PROFIT
Gross profit	27,493	$ 353,946
Wecast Service
NET SALES TO EXTERNAL CUSTOMERS
Net sales	32,377,023
GROSS PROFIT
Gross profit	$ 3,794,479

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Segment Reporting (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
TOTAL ASSETS
Total	$ 73,649,049	$ 55,746,290	[1]
Unallocated assets
TOTAL ASSETS
Total	4,181,904	4,321,677
Intersegment elimination
TOTAL ASSETS
Total	(203,033)
Legacy YOD
TOTAL ASSETS
Total	35,955,219	36,975,911
Wecast Service
TOTAL ASSETS
Total	$ 33,714,959	$ 14,448,702

[1] The above consolidated balance sheets present the Wecast Services Limited and Wide Angle Group Limited acquired from BT Capital Global Limited ("BT") on January 30 and January 31, 2017, respectively as if they had been owned by the Company since November 10, 2016 in accordance with ASC Subtopic 805-50 (See Note 4 "Acquisition")