Form 10-Q One Horizon Group, Inc.

Quarterly report [Sections 13 or 15(d)]

Published: 2019-05-15 16:03:00
Submitted: 2019-05-15
Period Ending In: 2019-03-31
s118063_10q.htm 10-Q


ENT> 10-Q 1 s118063_10q.htm 10-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended March 31, 2019

 

or

 

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: 001-36530

 

One Horizon Group, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware
 
46-3561419
(State or other jurisdiction of incorporation
or organization)
 
(I.R.S. Employer Identification No.)

 

649 NE 81st Street, Miami, Florida
 
 33138
(Address of principal executive offices)
 
 (Zip Code)

 

(305) 420-6640

(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 ☐

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

 

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

 

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
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 ☒

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. As of May 13, 2019, 88,401,431 shares of the registrant’s common stock, par value $0.0001 per share, were outstanding.

 

 

 

 

 

TABLE OF CONTENTS

 

 
 
 
Item 1. Financial Statements (unaudited)
4
 
 
17
 
 
20
 
 
20
 
 
 
 
 
22
 
 
22
 
 
22
 
 
22
 
 
22
 
 
22
 
 
22
 
 
23

 

2

 

 

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

 

The statements made in this Report, and in other materials that the Company has filed or may file with the Securities and Exchange Commission, in each case that are not historical facts, contain “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, which can be identified by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “projects,” “estimates,” “believes,” “seeks,” “could,” “should,” or “continue,” the negative thereof, and other variations or comparable terminology as well as any statements regarding the evaluation of strategic alternatives. These forward-looking statements are based on the current plans and expectations of management, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements. These risks include, but are not limited to, risks and uncertainties relating to our current cash position and our need to raise additional capital in order to be able to continue to fund our operations; our ability to retain our managerial personnel and to attract additional personnel; competition; our ability to protect intellectual property rights, and any and other factors, including the risk factors identified in the documents we have filed, or will file, with the Securities and Exchange Commission.

 

In light of these assumptions, risks and uncertainties, the results and events discussed in the forward-looking statements contained in this report or in any document incorporated herein by reference might not occur. Investors are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the respective dates of this report or the date of the document incorporated by reference in this report. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

 

These and other matters the Company discusses in this Report, or in the documents it incorporates by reference into this Report, may cause actual results to differ from those the Company describes. The Company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

 

3

 

 

PART I – FINANCIAL INFORMATION

 

ONE HORIZON GROUP, INC.

Condensed Consolidated Balance Sheets

March 31, 2019 and December 31, 2018

(in thousands, except share data)

 

   March 31,   December 31, 
   2019   2018 
Assets  (unaudited)      
           
Current assets:          
Cash  $1,076   $353 
Accounts receivable, net   282    325 
Prepaid compensation   550    550 
Investment   100    100 
Other receivable   500    2,022 
Advances to acquisition target   134    70 
Deferred production costs   61    87 
Other current assets   351    386 
    3,054    3,893 
Current assets of discontinued operations       129 
Total current assets   3,054    4,022 
           
Property and equipment, net   40    3 
Intangible assets, net   3,024    3,184 
Goodwill   2,213    2,213 
Prepaid compensation, net of current portion   1,329    1,467 
Non current assets of discontinued operations       36 
Total assets  $9,660   $10,925 
           
Liabilities, Temporary Equity and Stockholders’ Equity          
           
Current liabilities:          
Accounts payable  $494   $334 
Deferred revenue   46    177 
Accrued expenses   279    156 
Accrued compensation   155    181 
Equipment note payable due within one year   3     
Notes payable   110    101 
Notes payable related parties   203    205 
Promissory notes, related parties   1,000    1,000 
Current liabilities of continued operations   2,290    2,154 
           
Current liabilities of discontinued operations       301 
           
Long-term liabilities          
Equipment note payable   28     
Total liabilities   2,318    2,455 
           
Temporary Equity – redeemable common stock outstanding 848,611 shares   605    605 
           
           
Stockholders’ Equity          
           
Preferred stock: $0.0001 par value, authorized 50,000,000 shares; nil issued and outstanding shares        
           
Common stock: $0.0001 par value, authorized 200,000,000 shares; issued and outstanding 88,401,431 shares as of March 31, 2019 and December 31, 2018   8    8 
Additional paid-in capital   62,600    62,600 
Share subscription receivable   (1,425)   (1,425)
Accumulated deficit   (55,510)   (54,854)
Accumulated other comprehensive loss   (24)   (35)
Total One Horizon Group, Inc. stockholders’ equity   5,649    6,294 
Equity attributable to non-controlling interest   1,088    1,571 
           
Total Stockholders’ Equity   6,737    7,865 
           
Total liabilities and stockholders’ equity  $9,660   $10,925 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

4

 

 

ONE HORIZON GROUP, INC.

Condensed Consolidated Statements of Operations

For the three months ended March 31, 2019 and 2018

(in thousands)

(unaudited)

 

   Three Months ended March 31, 
   2019   2018 
         
Revenue  $201   $274 
           
Cost of revenue:          
Software and production costs   82     
Amortization of intangible assets   160    405 
    242    405 
           
Gross deficit   (41)   (131)
           
Expenses:          
General and administrative   1,184    1,390 
Acquisition related costs       780 
Depreciation   1    20 
           
    1,185    2,190 
           
Loss from operations   (1,226)   (2,321)
           
Other income and expense:          
Interest expense   (20)   (373)
Interest income   4     
Other income   553     
Foreign exchange   (1)    
           
    536    (373)
           
           
           
Net loss for the period   (690)   (2,694)
           
Net loss attributable to non-controlling interest   34    120 
           
Net loss attributable to One Horizon Group, Inc. Common stockholders  $(656)  $(2,574)
           
Loss per share attributable to One Horizon Group, Inc. stockholders          
           
Basic and diluted net loss per share – continuing operations  $(0.01)  $(0.07)
           
           
           
Weighted average number of shares outstanding          
Basic and diluted   88,410    32,080 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

5

 

 

ONE HORIZON GROUP, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the three months ended March 31, 2019 and 2018

(in thousands)

(unaudited)

 

 
 
Three Months ended March 31,
 
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
Net loss
 
$
(656
)
 
$
(2,574
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustment gain (loss)
 
 
11
 
 
 
(1
)
Total comprehensive loss
 
$
(645
)
 
$
(2,575
)

 

See accompanying notes to unaudited condensed consolidated financial statements

 

6

 

 

ONE HORIZON GROUP, INC.

Condensed Consolidated Statements of Stockholders’ Equity

For the three months ended March 31, 2019 and 2018

(in thousands)

(unaudited)

 

 
 
Mezzanine Equity
 
 
Common Stock
 
 
Additional
 
 
Stock Subscription
 
 
Accumulated
 
 
Accumulated
 
 
Non-Controlling
 
 

Total

Stockholders'

 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Paid-In
 
 
Receivable
 
 
Deficit
 
 
OCI
 
 
Interest
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, January 1, 2018
 
 
 
 
$
 
 
 
30,255
 
 
$
3
 
 
$
48,356
 
 
$
 
 
$
(41,085
)
 
$
(22
)
 
$
 
 
$
7,252
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,574
)
 
 
 
 
 
(120
)
 
 
(2,694
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
 
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of shares for services
 
 
171
 
 
 
199
 
 
 
476
 
 
 
 
 
 
728
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
728
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of shares for acquisitions
 
 
 
 
 
 
 
 
2,333
 
 
 
 
 
 
2,507
 
 
 
 
 
 
 
 
 
 
 
 
1,353
 
 
 
3,860
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of shares for coversion of warrants
 
 
 
 
 
 
 
 
750
 
 
 
 
 
 
563
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
563
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of shares for conversion of debt
 
 
677
 
 
 
406
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion benefit on convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, March 31, 2018
 
 
848
 
 
$
605
 
 
 
33,814
 
 
$
3
 
 
$
52,354
 
 
$
 
 
$
(43,659
)
 
$
(23
)
 
$
1,233
 
 
$
9,908
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, January 1, 2019
 
 
848
 
 
$
605
 
 
 
87,560
 
 
$
8
 
 
$
62,600
 
 
$
(1,425
)
 
$
(54,854
 
$
(35
)
 
$
1,571
 
 
$
7,865
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(656
)
 
 
 
 
 
(34
)
 
 
(690
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11
 
 
 
 
 
 
 11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal of equity in Banana Whale Studios PTE Limited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(449
)
 
 
(449
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balances, March 31, 2019

 

 

 
848
 
 
$
605
 
 
 
87,560
 
 
$
8
 
 
$
62,600
 
 
$
(1,425
)
 
$
(55,510
)
 
$
(24
)
 
$
1,088
 
 
$
6,737
 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

7

 

 

ONE HORIZON GROUP, INC.

Condensed Consolidated Statements of Cash Flows

For the three months ended March 31, 2019 and 2018

(in thousands)

(unaudited)

 

   2019   2018 
Cash flows from operating activities:          
           
Net loss for the period  $(690)  $(2,694)
           
Adjustment to reconcile net loss for the period to net cash flows from operating activities:          
Depreciation of property and equipment   1    20 
Amortization of intangible assets   160    405 
Gain on sale of interest in subsidiary   (553)    
Amortization of debt discount       355 
Amortization of shares issued for services   138    261 
Shares issued for services       1,184 
           
           
Changes in operating assets and liabilities:          
Accounts receivable   43    (170)
Deferred production costs   26     
Other assets   35    (79)
Deferred revenue   (131)    
Accounts payable and accrued expenses   257    127 
Net cash flows from operating activities   (714)   (591)
           
Cash flows from investing activities:          
Cash advances to acquisition target   (64)    
Proceeds from sale of interest in subsidiary   1,500     
Purchase of fixed assets   (38)    
Cash consideration of acquisition of business net of cash acquired       (150)
Net cash flows from continuing investing activities   1,398    (150)
           
Cash flows from financing activities:          
           
Proceeds from issue of common stock       563 
Proceeds from convertible notes       200 
Proceeds from long-term debt   31     
Advances from related parties, net   7    2 
           
Net cash flows from financing activities   38    765 
           
Increase in cash during the period   722    24 
Foreign exchange effect on cash   1    1 
           
Cash at beginning of the period   353    763 
           
Cash at end of the period  $1,076   $788 
           
Non-cash financing transactions:          
Common stock issued for services       927 
Common stock issued for business combinations       3,860 
Common stock issued for conversion of debt       406 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

8

 

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2019

 

Note 1. Description of Business, Organization and Principles of Consolidation

 

Description of Business

 

One Horizon Group, Inc. (the “Company”) has the following three core businesses:

 

 
(i)
123Wish, Inc. formerly Once In A Lifetime, LLC (“123Wish”) – an experience based platform where subscribers have a chance to play and win experiences from celebrities, athletes and artists.

 
(ii)
Love Media House, Inc. formerly known as C-Rod, Inc. (“Love Media House”) -
a full-service music production, artist representation and digital media business that provides
a broad range of entertainment services including branding and advertising, video and photo production, recording (including music production, arranging, mixing and mastering), songwriting (arranging writing sessions with experienced and multi-platinum writers), artist development, digital distribution, billboard chart promotion, and consulting and life coaching. The entertainment marketplace is highly competitive. The team at Love Media House, headed by Chis Rodriguez, has worked with many famous artists and achieved many Billboard numbers and giving Love Media House an important edge in promoting new talent.

 
(iii)
Browning Productions & Entertainment, Inc. (“Browning Productions”) - a full service video production company and executive producer for all entertainment projects. Browning Productions has been selected to produce and distribute numerous television programs spanning dozens of episodes in 2019 for acclaimed television networks.

 

In February 2019, the Company entered into an agreement to acquire a majority interest in Maham LLC, an innovative, technology driven yoga studio concept, which the Company expects to close during the second quarter of 2019.

 

The Company is based in the United States of America, Hong Kong, China and the United Kingdom.

 

Interim Period Financial Statements

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the Securities and Exchange Commission’s instructions. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The results of operations reflect interim adjustments, all of which are of a normal recurring nature and, in the opinion of management, are necessary for a fair presentation of the results for such interim period. The results reported in these interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. Certain information and note disclosure normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on April 15, 2019.

 

Current Structure of the Company

 

The Company has the following subsidiary companies:

 
 
Subsidiary name
% Owned
 
123Wish, Inc. (acquired February 2018)
51%
 
One Horizon Hong Kong Ltd
100%
 
Horizon Network Technology Co. Ltd
100%
 
Love Media House, Inc. (acquired March 2018)
100%
 
Browning Productions & Entertainment, Inc. (acquired October 2018)
51%

 

In addition to the subsidiaries listed above, Suzhou Aishuo Network Information Co., Ltd (“Suzhou Aishuo”) is a limited liability company, organized in China and controlled by us via various contractual arrangements. Suzhou Aishuo is treated as one of our subsidiaries for financial reporting purpose in accordance with GAAP.

 

All significant intercompany balances and transactions have been eliminated in consolidation.

 

Note 2. Summary of Significant Accounting Policies

 

Foreign Currency Translation

 

The reporting currency of the Company is the United States dollar. Assets and liabilities other than those denominated in U.S. dollars, primarily in Hong Kong and the United Kingdom, are translated into United States dollars at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company expects to reinvest the amounts indefinitely in operations.

 

Transaction gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional currency are included in general and administrative expenses.

 

Liquidity and Capital Resources

 

Historically, the Company has incurred net losses and negative cash flows from operations which raise substantial doubt about the Company’s ability to continue as a going concern. The Company has principally financed these losses from the sale of equity securities and the issuance of debt instruments.

 

The Company may be required to raise additional funds through various sources, such as equity and debt financings. While the Company believes it is probable that such financings could be secured, there can be no assurance the Company will be able to secure additional sources of funds to support its operations, or if such funds are available, that such additional financing will be sufficient to meet the Company’s needs or on terms acceptable to us.

 

At March 31, 2019, the Company had cash of approximately
$1,076,000. Together with the Company’s current operational plan and budget, the Company believes that it is probable that it will have sufficient cash to fund its operations into at least the third quarter of 2020. However, actual results could differ materially from the Company’s projections.

 

9

 

  

Accounts receivable, revenue recognition and concentrations

 

Performance Obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the revenue recognition standard. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s contracts do not typically have variable consideration that needs to be considered when the contract consideration is allocated to each performance obligation.

 

Revenue Recognition – We recognize revenues from each business segment as described below:

 

 
1.
123Wish derives income from user subscriptions, sale of merchandise, sale of tickets for experiences with social media influencers and artists, and the sale of corporate sponsorships, each of which is a separate performance obligation. User subscriptions cover a defined period of time (typically one month) and the revenue is recognized as the Company satisfies the requisite performance obligation (over the defined subscription period). Sale of merchandise and tickets are recognized when the customer has paid for the item and when the merchandise and/or ticket has been delivered to the customer. Corporate sponsorship packages are non-refundable and relate to brand association. The Company has no further service deliverable to the sponsor and the revenue is recognized when the agreement is entered into by both parties and the required marketing materials have been delivered to the corporate sponsor for their use.

 

 
2.
Love Media House derives income from recording and video services. Income is recognized when the recording and video services are performed and the final customer product is delivered and the point at which the performance obligation is satisfied. These revenues are non-refundable.

 

 
3.
Browning Production & Entertainment, Inc derives income from the advertising associated with the airing of television series produced by BP&E and also license income from the show of series on certain channels based on the number of viewers attracted. Advertising revenue is recognized when the series to which the advertising relates is aired.

 

The Company does not have off-balance sheet credit exposure related to its customers. As of March 31, 2019 four customers accounted for 69% of the accounts receivable balance and as of December 31, 2018, three customers accounted for 68% of the accounts receivable balance. Two customers accounted for 69% of the revenue for the quarter ended March 31, 2019 and one customer accounted for 82% of the revenue for the quarter ended March 31, 2018.

 

During the three months ended March 31, 2019, $7,500 of revenue were generated from Maham, LLC, an acquisition target.

 

10

 

 

Income taxes

 

The Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties are recorded as a component of interest expense and other expense, respectively.

 

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities; (2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Company’s estimates and assumptions may differ significantly from tax benefits ultimately realized. Historically the Company has not filed income tax returns and the related required informational filings in the US. Certain informational filings if not filed contain penalties and such penalties could be material. The Company is currently addressing this issue with advisors to determine the amount, if any, of potential payments due. Given the complexity of the issue the Company is unable to quantify a range of potential loss, if any. Accordingly no liability has been recorded in the accompanying consolidated balance sheets in respect of this matter

 

Net Loss per Share

 

Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under basic loss per share) and potentially dilutive securities. For the three month periods ended March 31, 2019 and 2018 all outstanding warrants and shares underlying convertible debt are antidilutive because of net losses, and as such, their effect has not been included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original approval date for purposes of earnings per share computations.

 

11

 

 

Share-Based Compensation

 

The Company accounts for stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes option pricing model, which includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility.

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, determining fair values of assets acquired and liabilities assumed in business combinations, valuation allowance for deferred tax assets, allowances for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates and assumptions.

 

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, “Leases,” which created a new Topic, ASC Topic 842 and established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments, that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such assets and liabilities would not be recognized, and lease expense would be recognized generally on a straight-line basis over the lease term. This standard is effective for the Company beginning in 2019 and was adopted by the Company for the year beginning January 1, 2019. The Company has evaluated the impact of this revised guidance on its financial statements and determined it had no material impact, as the Company has no leasing arrangements with terms greater than one year.

 

12

 

  

Note 3. Discontinued operations

 

In November 2018 the management of the Company’s then 51% controlled subsidiary, Banana Whale Studios PTE Ltd. (“BWS”), entered into discussions whereby the Company would sell its shares of BWS to a third party. Under the agreement, which has an effective date of January 1, 2019, the Company received cash of $1,500,000 and a promissory note of $500,000 and the return of the 7,383,000 Company shares issued on acquisition. The Company shares are held in Escrow for three months to secure certain warranties given by the Company on closure.

 

The Company realized a gain of $553,000 on the sale of its 51% interest is BWS during the three months ended March 31, 2019.

 

13

 

 

Note 4. Intangible Assets

 

Intangible assets consists of the following (in thousands)
:

 

   March 31,   December 31, 
   2019   2018 
         
Horizon secure messaging software  $548   $548 
Social online application software   2,307    2,307 
Customer lists   900    900 
    3,755    3,755 
Less accumulated amortization   (731)   (571)
Intangible assets, net  $3,024   $3,184 

 

Note 5. Goodwill

 

Goodwill consists of the following (in thousands):

 

   March 31,   December 31, 
   2019   2018 
         
123Wish, Inc.  $419   $419 
Love Media House, Inc. (formerly C. Rod, Inc.)   1,172    1,172 
Browning Productions & Entertainment, Inc   622    622 
   $2,213   $2,213 

 

Note 6. Equipment long-term debt

 

During the three months ended March 31, 2019, the Company financed the purchase of certain production equipment through a five year finance contract payable at $830 per month including interest of approximately 20% per annum.

 

Note 7. Notes Payable, Related Parties

 

As of March 31, 2019, amounts totaling $203,000 (December 31, 2018 - $205,000) were owed to certain members of the management at subsidiary companies. The amounts are unsecured, interest free and have no specified repayment dates.

 

14

 

 

Note 8. Notes Payable

 

a) Promissory notes.

 

The promissory notes due to Zhanming Wu ($500,000) and the Company’s CEO, Mark White ($500,000), both considered related parties, including accrued interest of 7% per annum from issuance, are due for repayment on August 31, 2019.

 

b) Other notes payable.

 

Notes payable by Browning Productions & Entertainment, Inc. totaling $110,000 are due to unrelated parties and are repayable on demand and interest bearing at average rates of 5.4% per year.

 

Note 9. Share Capital

 

Common Stock

 

The Company is authorized to issue 200 million shares of common stock, par value of $0.0001.

 

During the three months ended March 31, 2019 there were no shares of common stock issued.

 

Stock Purchase Warrants

 

As at March 31, 2019, the Company had reserved 185,169 shares of its common stock for the outstanding warrants with weighted average exercise price of $0.80. Such warrants expire at various times up to July 2020.

 

During the three months ended March 31, 2019, no warrants were issued, forfeited or exercised.

 

Note 10. Stock-Based Compensation

 

The shareholders approved a stock option plan on August 6, 2013, the 2013 Equity Incentive Plan (“2013 Plan”). The 2013 Plan is for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, cash bonuses and other stock-based awards to employees, directors and consultants of the Company.

 

There have been no options issued in the three months ended March 31, 2019 and 2018 and there are no options outstanding as at March 31, 2019.

 

In March 2018 the Company adopted an Equity Incentive Plan (“the 2018 Plan”) to provide additional incentives to the employees, directors and consultants of the Company to promote the success of the Company’s business. During the three months ended March 31, 2019, no common stock of the Company was issued under the 2018 Plan.

 

15

 

 

Note 11. Segment Information

 

The Company has the following business segments for the three months ended March 31, 2019 and 2018.

 

The Company’s revenues were generated in the following business segments (in thousands)

 

   March 31,   March 31, 
   2019   2018 
         
Sale of secure messaging licenses  $   $100 
123Wish       102 
Love Media House   67    72 
Browning Productions   134     
Total  $201   $274 

 

The following is a detail of the Company’s cost of sales by business segment:

 

   March 31,   March 31, 
   2019   2018 
         
Sale of secure messaging licenses including amortization of software  $   $405 
123Wish   113     
Love Media House   83     
Browning Productions   46     
Total  $242   $405 

 

The following is a detail of the Company’s general and administrative and other expenses by business segment:

 

   March 31,   March 31, 
   2019   2018 
         
123Wish   22    345 
Love Media House   165    33 
Browning Productions   129     
Corporate   869    1,763 
Total  $1,185   $2,190 

 

The following is a detail of the Company’s other income and expenses by business segment:

 

   March 31,   March 31, 
   2019   2018 
         
123Wish  $   $ 
Love Media House        
Browning Productions   (3)    
Corporate   539    (373)
Total  $536   $(373)

 

The following is a detail of the continuing net income (loss) by business segment:

 

   March 31,   March 31, 
   2019   2018 
         
Sale of secure messaging licenses  $   $51 
123Wish   (26)   (243)
Love Media House   (131)   39 
Browning Productions   (45)    
Corporate   (488)   (2,541)
Total  $(690)  $(2,694)

 

16

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our unaudited condensed consolidated financial statements for the three months ended March 31, 2019 and 2018 and notes thereto contained elsewhere in this Report, and our annual report on Form 10-K for the twelve months ended December 31, 2018 including the consolidated financial statements and notes thereto. The following discussion and analysis contains forward-looking statements, which involve risks and uncertainties. Our actual results may differ significantly from the results, expectations and plans discussed in these forward-looking statements. See “Cautionary Note Concerning Forward-Looking Statements.”

 

Overview

 

Business

 

During the three months ended March 31, 2019, the Company executed the following transaction:

 

Disposition of a Controlling Interest in Banana Whale Studios Pte. Ltd.

 

On February 4, 2019, we entered into and consummated an agreement (the “Agreement”) with Banana Whale and the Banana Whale Stockholders, pursuant to which we sold the Controlling Interest in Banana Whale in exchange for $2,000,000, consisting of $1,500,000 in cash and a $500,000 promissory note bearing interest at 5% per annum payable on December 31, 2019 (the “BWS Note”). Under the BWS Note, Banana Whale can prepay the BWS Note in whole or in part without premium or penalty. Pursuant to the BWS Note, the Banana Whale Stockholders agreed to guarantee the payments of all amounts due thereunder on a limited-recourse basis. On February 4, 2019, we also entered into a Pledge and Escrow Agreement with the Banana Whale Stockholders pursuant to which the Banana Whale Stockholders agreed to place the Controlling Interest in Banana Whale in escrow as security for payment of the BWS Note.

 

The Agreement also terminated certain of the remaining obligations under the Exchange Agreement which was previously entered into by us and the Banana Whale Stockholders, releasing us, Banana Whale and the Banana Whale Stockholders from their remaining obligations thereunder. Pursuant to the Exchange Agreement, we had agreed to acquire the Controlling Interest in Banana Whale in exchange for a number of our shares to be based upon the earnings of Banana Whale. Under the Agreement, the Company agreed to leave the OHGI Shares in escrow and together with the Banana Whale Stockholders, to instruct the escrow agent that the OHGI Shares will remain in escrow for a period of at least 90 days pending an absence of asserted claims under the Agreements indemnification provisions.

 

Agreement to Acquire a Majority Holding in Maham LLC

 

In February 2019 the Company signed an agreement to acquire a majority stake in Maham LLC. Maham is an innovative , technology driven yoga studio concept (see http://mahamstudio.com) . The intention is to use the 123Wish Platform technology to livestream Maham Yoga classes directly to the Maham Yoga app.

 

The Company has advanced $134,000 to Maham as part of the deal and plans to issue the necessary shares to complete the acquisition in the second quarter of 2019.

 

17

 

  

Results of Operations

 

Comparison of three months ended March 31, 2019 and 2018

 

The following table sets forth key components of our results of operations for the periods indicated.

 

(All amounts, other than percentages, in thousands of U.S. dollars)

 

  

Three Months Ended

March 31,

   Change 
   2019   2018   Increase/
(decrease)
   Percentage
Change
 
                 
Revenue  $201   $274   $(74)   (27.0)
                     
Cost of revenue   242    405    (164)   (40.5)
                     
Gross deficit   (41)   (131)   90    68.7 
                     
Operating expenses:                    
                     
General and administrative   1,151    1,390    (239)   (17.2)
Acquisition related costs       780    (780)   (100.0)
Depreciation   1    20    (19)   (95.0)
                     
                     
Total operating expenses   1,152    2,190    (1,038)   (47.4)
                     
Loss from operations   (1,193)   (2,321)   (1,128)   (48.6)
                     
Other income(expense)   536    (373)   909    243.7 
Net loss for the period   (657)   (2,694)   (2,037)   (75.6)
Net loss attributable to non-controlling interest   34    120    (86)   (71.7)
Net Loss attributable to One Horizon Group, Inc  $(623)  $(2,574)   (1,951)   (75.8)

 

Revenue: Revenue reduced by $73,000 to approximately $201,000 in the three months ended March 31, 2019 as compared to the three months ended March 31, 2018. This was primarily due to reduction in sale of secure messaging software and sponsorship revenue on 123Wish totaling approximately $200,000 offset mainly by income generated by Browning Productions & Entertainment, Inc.

 

Gross Profit: Gross margin deficit for the three months ended March 31, 2019 was approximately $41,000 as compared to $131,000 for the three months ended March 31, 2018, a reduction of approximately $90,000, due to decreased amortization expense.

 

18

 

  

Operating Expenses: Operating expenses, including general and administrative expenses and depreciation were approximately $1.2 million and $2.2 million during the three months ended March 31, 2019 and 2018, respectively. The major cost reduction related to the consulting costs including due diligence and legal costs incurred in the acquisitions strategy of the Company in the three months ended March 31, 2018 as compared to zero costs incurred in the three months ended March 31, 2019.

 

Net Loss: Net Loss for the three months ended March 31, 2019 was approximately $0.7 million as compared to net loss of approximately $2.7 million for the same period in 2018. The reduction in the losses is attributable to the disposal of the Company’s interest in Banana Whale Studios PTE Limited in February 2019 and the reduction in acquisition related costs.

 

19

 

  

Liquidity and Capital Resources

 

Three Months Ended March 31, 2019 and March 31, 2018

 

The following table sets forth a summary of our net cash flows for the periods indicated:

 

  

For the Three Months Ended 

March 31,

(in thousands)

 
   2019   2018 
Net cash flows from operations   (714)   (591)
Net cash flows from investing activities   1,398    (150)
Net cash flows from financing activities   38    765 

 

Net cash used by operating activities was approximately $714,000 for the three months ended March 31, 2019 as compared to net cash used in operating activities of approximately $591,000 for the same period in 2018 an increase of approximately 21%.

 

Net cash generated in investing activities was approximately $1,398,000 as compared to cash used of $150,000 for the three months ended March 31, 2019 and 2018, respectively. Net cash generated in investing activities related primarily to cash generated from the disposal of the majority interest in Banana Whale Studios PTE Limited.

 

Net cash generated in financing activities was approximately $38,000 for the three months ended March 31, 2019 as compared to $765,000 for the three months ended March 31, 2018. The cash generated from financing activities reduced by approximately $727,000 and was primarily due to the proceeds from the sale of new shares of common stock and proceeds from convertible debt during the three months ended March 31, 2018, which were not repeated in the three months ended March 31, 2019.

 

At March 31, 2019 the Company had cash of $1,076,000. Together with the cash on hand and based on the Company’s current operational plan and budget, the Company believes that it is probable that it has will have sufficient cash to fund its operations into at least the third quarter of 2020. However actual results could differ materially from the Company’s projections.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

(a) Evaluation of Disclosure Controls and Procedures

 

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our chief executive officer and chief financial officer (our “Certifying Officers”), the effectiveness of our disclosure controls and procedures as of March 31, 2019, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of March 31, 2019, our disclosure controls and procedures were not effective. This was due to certain deficiencies in our controls over financial reporting. In particular a lack of accounting personnel has resulted in an inability to segregate various accounting functions.

 

20

 

 

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

(b) Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

21

 

 

PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

We are not a party to any material legal proceedings and no material legal proceedings have been threatened by us or, to the best of our knowledge, against us.

 

ITEM 1A. RISK FACTORS

 

Reference is made to the risks and uncertainties disclosed in Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”) filed April 15, 2019, which sections are incorporated by reference into this report. Prospective investors are encouraged to consider the risks described in our 2018 Form 10-K, and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Report and other information publicly disclosed or contained in documents we file with the Securities and Exchange Commission before purchasing our securities.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None

 

ITEM 6. EXHIBITS

 

The following exhibits are filed herewith:

 

Exhibit No.
 
Description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
101.INS
 
XBRL Instance Document
101.SCH
 
XBRL Taxonomy Extension Schema Document
101.CAL
 
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
 
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
 
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
 
XBRL Taxonomy Extension Presentation Linkbase Document

 

22

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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.

 

 
ONE HORIZON GROUP, INC.
 
 
 
 
 
Date: May 15, 2019
By:
/s/ Mark White
 
 
 
Mark White
 
 
 
President and Chief Executive Officer (Principal Executive Officer)
 
 
 
 
 
 
By:
/s/ Martin Ward
 
 
 
Martin Ward
 
 
 
Chief Financial Officer, (Principal Financial Officer
 
 
 
and Principal Accounting Officer)
 

 

23

 

s118063_ex31-1.htm EXHIBIT 31.1


ENT> EX-31.1 2 s118063_ex31-1.htm EXHIBIT 31.1

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Mark White, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of One Horizon Group, 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(s) 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(s) 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, 2019

 

/s/ Mark White

 

President and Chief Executive Officer 

(principal executive officer)

 

 

s118063_ex31-2.htm EXHIBIT 31.2


ENT> EX-31.2 3 s118063_ex31-2.htm EXHIBIT 31.2

 

Exhibit 31.2

 

CERTIFICATIONS

 

I, Martin Ward, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of One Horizon Group, 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(s) 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(s) 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, 2019

 

/s/ Martin Ward

 

Chief Financial Officer 

(principal financial officer)

 

 

 

s118063_ex32-1.htm EXHIBIT 32.1


ENT> EX-32.1 4 s118063_ex32-1.htm EXHIBIT 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

 

In connection with the quarterly report of One Horizon Group, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark B. White, President and Chief Executive Officer of the Company, and Martin Ward, Chief Financial Officer of the Company, certify to the best of my knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: May 15, 2019 /s/ Mark B. White
  Mark B. White
 

President and Chief Executive Officer 

(principal executive officer) 

   
Date: May 15, 2019 /s/ Martin Ward
  Martin Ward
  Chief Financial Officer
  (principal financial officer)

 

 

Additional Files
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0001615774-19-007922.txt   Complete submission text file   2359334
ohgi-20190331.xml 5 XBRL INSTANCE FILE EX-101.INS 361048
ohgi-20190331.xsd 6 XBRL SCHEMA FILE EX-101.SCH 28095
ohgi-20190331_cal.xml 7 XBRL CALCULATION FILE EX-101.CAL 52093
ohgi-20190331_def.xml 8 XBRL DEFINITION FILE EX-101.DEF 111552
ohgi-20190331_lab.xml 9 XBRL LABEL FILE EX-101.LAB 210375
ohgi-20190331_pre.xml 10 XBRL PRESENTATION FILE EX-101.PRE 177222

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