Going Concern and Management's Plans

12 Months Ended

Dec. 31, 2015

Going Concern and Management's Plans [Text Block]

3. Going Concern and Management’s Plans

For the years ended December 31, 2015 and 2014, we incurred net losses from continuing operations of approximately $8.5 million and $13.0 million, respectively, and we used cash for operations of approximately $6.4 million and $10.2 million, respectively. Further, we had accumulated deficits of approximately $86.5 million and $78.4 million as of December 31, 2015 and 2014, respectively, due to recurring losses since our inception.

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 January 31, 2014, we completed a Series E Preferred Share financing in which we raised an additional $19.0 million. See Note 9 for additional information. We also may have the ability to raise funds by various methods, including utilization of our $50 million shelf registration, of which $47.3 million is remaining. On December 21, 2015, the Company entered into an Amended and Restated Securities Purchase Agreement, subject to certain closing conditions, to issue and sell 4,545,454 shares of its common stock, par value $0.001 per share (the “Common Stock”) for $2.20 per share, or a total purchase price of $10.0 million to Beijing Sun Seven Stars Culture Development Limited (“SSS”), a PRC company. However, additional financing may not be available to the Company on terms acceptable to us 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.