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Fairport, NY, Nov. 22, 2021 (GLOBE NEWSWIRE) — Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media and content technologies holding company (“Vinco Ventures,” or the “Company”), today announced results for the third quarter ended September 30, 2021.

“We are very pleased with our operational developments in the quarter, which included key building blocks of our strategy to create a global media and content platform,” said Lisa King, Chief Executive Officer of Vinco Ventures. “Importantly, through our joint venture, ZVV Media, we completed the acquisition of an 80% interest in Lomotif, a global, pure play video-sharing social networking platform and we are making good progress on extending the brand to additional geographies, including the U.S. and India. We also announced the planned spin-off of our blockchain business, Cryptyde,” continued Ms. King.

Operational Highlights:

  • Vinco Ventures and ZASH Global Media and Entertainment Corporation through their joint venture, ZVV Media Partners, LLC (“ZVV”), completed the acquisition of an 80% interest in Lomotif Private Limited (“Lomotif”).
  • Lomotif officially launched in India this past weekend following the beta test in the third quarter. Lomotif worked in India with Social Kyte, a popular influencer platform with over 90,000 member influencers. The Lomotif expansion into India, a large target market, continues to progress with user growth.
  • Lomotif worked with EDC Las Vegas to extend the Lomotif brand in the U.S. through a three-day event in October that reached and engaged a large audience. Specifically, Lomotif activated over 150 influencers and the Lomotif brand received over 51 million views on TikTok and over 40 million Instagram story views.
  • ZVV through its business arrangements with Zash completed its first TV series, Preach, and its first feature film, Camp Hideout. Both projects are expected to be monetized in the first half of 2022.
  • Cryptyde is set to release the limited-edition Nick Cannon Presents: SucStress – The E-NFT Album, featuring Nick Cannon and the Ncredible Gang, on its E-NFT.com platform.
  • Cryptyde recently launched recording Artist Tory Lanez album “When It’s Dark” on the E-NFT.com platform. “When It’s Dark” is the first album to go platinum on the blockchain with over 1,000,000 units sold.
  • The Company’s subsidiary, Cryptyde, Inc. (“Cryptyde”), filed its preliminary Form 10 registration statement with the SEC in connection with the planned spin-off of Cryptyde, which currently owns, directly or indirectly, 100% of EVNT Platform, LLC, CW Machines, LLC and Ferguson Containers, Inc. The distribution date is expected to occur in early 2022.
  • EVNT Platform, LLC launched a business effort, CW Machines, LLC, with Wattum Management, a global supplier of bitcoin mining equipment and services. The venture is expected to focus on simplifying consumer ownership of mining equipment through the integration of smart contract technologies.

Third Quarter 2021 Financial Highlights:

  • Cash, cash equivalents, and restricted cash totaled $149.9 million at September 30, 2021.
  • Revenue decreased 11.5% to $2.23 million from $2.52 million in the third quarter of 2020, driven primarily by the decrease in sales of personal protective equipment in the Edison Nation Medical division.
  • Gross profit margin decreased to 31.4% from 40.3% in the third quarter of 2020. The decrease is mainly attributed to the decrease in sales of personal protective equipment in the Edison Nation Medical division.
  • Selling, general and administrative expenses were $25.9 million, of which $6.2 million was stock based compensation, $5.6 million was due to legal and professional fees related to transactions and filings, and $5.1 million and $6.2 million related to the operating expenses (excluding Stock Based Compensation) of ZVV and Lomotif, respectively, since the close of the Lomotif transaction on July 23, 2021.
  • Net loss in the third quarter of 2021 was $542.5 million, or ($7.59) per basic and diluted share, compared to a net loss of $2.8 million, or ($0.30) per basic and diluted share in the third quarter of 2020. The increase in the net loss is primarily due to the issuance of warrants during the quarter and the change in estimated fair value of outstanding warrants as of September 30, 2021, as well as the costs associated with the Lomotif transaction and the results of its operations, which were consolidated into the Company’s financial results for the first time this quarter. On a non-GAAP basis, net loss for the three months ended September 31, 2021 without the $494.1 million of losses due to warrant activity was $48.4 million or ($0.68) per share. See below for reconciliation of Non-GAAP information to the most comparable measure calculated under U.S. generally accepted accounting principles (“GAAP”).

Vinco Ventures, Inc. Third Quarter 2021 Conference Call

Event Date: Tuesday November 23, 2021

Event Time: 8:30AM Eastern Standard Time

The audio conference call can be accessed through:

1- 877-407-2991 (U.S. participants)
1- 201-389-0925 (International participants)

A live and archived webcast presentation will be available at: https://investors.vincoventures.com/.

Conference Replay:

A teleconference replay will be available until November 29, 2021.
1- 877-660-6853 (U.S. participants)
1-201-612-7415 (International participants)
Passcode: 13725301

Vinco Ventures, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS

    September 30,
2021
    December 31,
2020
 
    (Unaudited)        
Assets                
Current assets:                
Cash and cash equivalents   $ 49,937,549     $ 249,356  
Restricted cash     100,000,000        
Short-term investments     282,000       1,018,000  
Accounts receivable, net     1,901,182       1,382,163  
Inventory     789,727       1,127,725  
Prepaid expenses and other current assets     3,855,618       522,259  
Loan held for investment     18,150,000        
Current assets of discontinued operations           1,042,680  
Total current assets     174,916,076       5,342,183  
Property and equipment, net     972,151       1,010,801  
Right of use assets, net     80,544       153,034  
Intangible assets, net     154,962,061       9,798,813  
Goodwill     5,983,852       5,983,852  
Non-current assets of discontinued operations           5,739,524  
Total assets   $ 336,914,684     $ 28,028,207  
                 
Liabilities and stockholders’ equity                
Current liabilities:                
Accounts payable   $ 5,587,010     $ 3,618,339  
Accrued expenses and other current liabilities     3,040,564       2,101,610  
Deferred revenues     64,243       152,040  
Current portion of operating leases liabilities     83,408       96,777  
Income tax payable     27,643       27,643  
Line of credit, net of debt issuance costs of $0 and $15,573, respectively           1,500,953  
Current portion of convertible notes payable, net of debt issuance costs of $91,518,515 and $0, respectively     28,481,485       577,260  
Current portion of notes payable, net of debt issuance costs of $0 and $212,848, respectively     15,357       1,301,212  
Current portion of notes payable – related parties     112,835       1,389,923  
Due to related party     15,401       32,452  
Current liabilities of discontinued operations           487,454  
Total current liabilities     37,427,946       11,285,663  
Operating leases liabilities –net of current portion           58,713  
Convertible notes payable – related parties, net of current portion, net of debt discount of $95,089 and $366,666, respectively     207,183       1,161,495  
Notes payable, net of current portion     166,061       595,879  
Notes payable – related parties, net of current portion     2,500,000       1,403,756  
Warrant liability     468,612,700        
                 
Total liabilities   $ 508,913,890     $ 14,505,506  
Commitments and Contingencies (Note 12)              
                 
Stockholders’ equity                
Preferred stock, $0.001 par value, 30,000,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively   $     $  
Series B Preferred Stock, $0.001 par value, 1,000,000 shares authorized; 0 and 764,618 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively           765  
Common stock, $0.001 par value, 250,000,000 shares authorized 107,021,381 and 14,471,403 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively     107,021       14,471  
Additional paid-in-capital     617,952,342       39,050,260  
Accumulated deficit     (812,250,328 )     (23,648,898 )
Total stockholders’ (deficit) equity attributable to Vinco Ventures, Inc.     (194,190,965 )     15,416,598  
Noncontrolling interests     22,191,759       (1,893,897 )
Total stockholders’ equity     (171,999,206 )     13,522,701  
Total liabilities and stockholders’ equity   $ 336,914,684     $ 28,028,207  

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

Vinco Ventures, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
    2021
(Unaudited)
    2020
(Unaudited)
    2021
(Unaudited)
    2020
(Unaudited)
 
Revenues, net   $ 2,231,986     $ 2,522,141     $ 7,488,959     $ 9,649,469  
Cost of revenues     1,531,840       1,505,234       4,906,410       6,873,889  
Gross profit     700,146       1,016,907       2,582,549       2,775,580  
                                 
Operating expenses:                                
Selling, general and administrative     25,869,419       2,617,961       43,471,951       8,185,477  
Operating loss     (25,169,273 )     (1,601,054 )     (40,889,402 )     (5,409,897 )
                                 
Other (expense) income:                                
Rental income     17,136       25,704       71,543       77,111  
Interest expense     (27,012,312 )     (1,004,626 )     (42,422,726 )     (2,575,737 )
Loss on issuance of warrants     (206,948,147 )           (415,803,862 )      
Change in fair value of warrant liability     (287,117,556 )           (287,891,003 )      
Change in fair value of short-term investment     (614,000 )           (736,000 )      
Loss on disposal of interest in joint venture                 (301,645 )      
Other income     649,009             649,009        
Total other (expense) income     (521,025,870 )     (978,922 )     (746,434,684 )     2,498,626  
Loss before income taxes     (546,145,143 )     (2,579,977 )     (787,324,086 )     (7,908,524 )
Income tax expense                        
Net loss from continuing operations   $ (546,145,143 )   $ (2,579,977 )   $ (787,324,086 )   $ (7,908,524 )
Net loss attributable to noncontrolling interests     (3,885,333 )     (37,439 )     (3,834,756 )     (15,198 )
Net loss from continuing operations attributable to Vinco Ventures, Inc.     (542,309,810 )     (2,542,538 )     (783,489,330 )     (7,893,326 )
Net income (loss) from discontinued operations     (153,320 )     (291,506 )     (5,112,100 )     4,704,394  
Provision for income taxes for discontinued operations                        
Net loss attributable to Vinco Ventures, Inc.   $ (542,463,130 )   $ (2,834,044 )   $ (788,601,430 )   $ (3,188,932 )
Net loss per share:                                
Net loss per share – basic   $ (7.59 )   $ (0.30 )   $ (18.63 )   $ (0.29 )
Net loss per share – diluted   $ (7.59 )   $ (0.30 )   $ (18.63 )   $ (0.29 )
Weighted average number of common shares outstanding – basic and diluted     71,516,431       9,324,023       42,326,468       10,853,242  

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

Vinco Ventures, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    Nine Months Ended September 30,  
    2021
(Unaudited)
    2020
(Unaudited)
 
Cash Flow from Operating Activities                
Net loss from continuing operations attributable to Vinco Ventures, Inc.   $ (783,489,330 )   $ (3,188,932 )
Net income attributable to noncontrolling interests     (3,834,756 )     (15,198 )
Net loss from continuing operations     (787,324,086 )     (3,204,130 )
Adjustments to reconcile net (income) loss to net cash used in operating activities:                
Discontinued operations     (5,112,100 )      
Depreciation and amortization     5,013,544       938,844  
Amortization of financing costs     42,324,603       2,015,422  
Stock-based compensation     16,829,359       2,765,022  
Amortization of right of use asset     80,333       226,167  
Gain on debt extinguishment     (852,352 )      
Gain on divestiture     4,130,580       (4,911,760 )
Change in fair value of short-term investments     736,000        
Loss on disposal of joint venture     304,643          
Loss on issuance of warrants     415,803,862        
Change in fair value of warrant liability     287,891,003        
Changes in assets and liabilities:                
Accounts receivable     (591,061 )     (1,037,432 )
Inventory     232,213       (146,126 )
Prepaid expenses and other current assets     (2,835,791 )     (612,276 )
Accounts payable     2,027,185       (367,355 )
Accrued expenses and other current liabilities     (356,941 )     1,237,169  
Operating lease liabilities     (80,582 )     (219,608 )
Due from related party     (17,050 )     4,753  
Net cash used in operating activities     (21,796,639 )     (3,311,310 )
                 
Cash Flows from Investing Activities                
Purchase of property and equipment     (281,164 )     (193,429 )
Cash received from sale of assets of CBAV 1, LLC     2,529,565        
Acquisition, net of cash received     (90,761,200 )      
Funding of loan receivable     (20,150,000 )      
Net cash used in investing activities     (108,662,799 )     (193,429 )
                 
Cash Flows from Financing Activities                
Borrowings under line of credit           1,144,100  
Borrowings under convertible notes payable     122,000,000       1,660,000  
Borrowings under notes payable     73,000       1,739,852  
Repayments under lines of credit     (379,333 )      
Repayments under notes payable     (1,143,318 )     (947,127 )
Repayments under convertible notes payable     (1,498,462 )      
Repayments under notes payable- related parties     (2,714,677 )     (14,508 )
Fees paid for financing costs     (10,205,678 )     (33,762 )
Distributions             (71,931 )
Net proceeds from issuance of common stock     6,055,000        
Net proceeds from exercise of warrants     167,961,099        
Net cash provided by financing activities     280,147,631       3,476,624  
Net increase (decrease) in cash and cash equivalents, and restricted cash     149,688,193       (28,115 )
Cash and cash equivalents, and restricted cash – beginning of period     249,356       412,719  
Cash and cash equivalents, and restricted cash – end of period   $ 149,937,549       384,604  
                 
Supplemental Disclosures of Cash Flow Information                
Cash paid during the period for:                
Interest   $ 976,282     $ 239,682  
Income taxes   $     $ 235,725  
Noncash investing and financing activity:                
Shares issued to note holders   $ 422,672     $ 2,292,864  
Shares issued to holder of line of credit   $ 1,178,750     $  
Shares issued for the divestiture of Cloud B, Inc.   $     $ 405,000  
Shares issued for the acquisition of Lomotif Private Limited   $ 10,135,000     $  
Conversions under notes payable   $ 31,251,007     $ 1,524,000  
Issuance of warrants to note holders   $ 102,938,515     $ 1,018,953  
Shares reserved for EVNT, LLC   $ 7,400,000     $  
Distribution for issuance of shares to noncontrolling interest members of Global Clean Solutions, LLC   $     $ 699,000  

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

Reconciliation to Non-GAAP Net Loss to adjust GAAP Net Loss to exclude losses from issuance of warrants and changes in fair value of warrant liability:

    For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
    2021
(Unaudited)
    2020
(Unaudited)
    2021
(Unaudited)
    2020
(Unaudited)
Net loss attributable to Vinco Ventures, Inc.   $ (542,463,130 )   $ (2,834,044 )   $ (783,601,430 )   $ (3,188,932
Less:                              
Loss on issuance of warrants     206,948,147             415,803,862      
Change in fair value of warrant liability     287,117,556             287,891,003      
Adjusted Net loss attributable to Vinco Ventures, Inc.   $ (48,398,427 )   $ (2,834,044 )   $ (84,906,565 )   $ (3,188,932
Net loss per share:                              
Net loss per share – basic   $ (0.68 )   $ (0.30 )   $ (2.01 )   $ (0.29
Net loss per share – diluted   $ (0.68 )   $ (0.30 )   $ (2.01 )   $ (0.29
Weighted average number of common shares outstanding – basic and diluted     71,516,431       9,324,023       42,326,468       10,853,242

About Lomotif

Lomotif is a video-sharing social networking platform that is democratizing video creation. Since the company was co-founded by video enthusiast Paul Yang in 2014, Lomotif has been granted three technology patents focused on empowering creators to share and watch short videos with ease through remix and collaboration. Yang’s vision is to build the world’s largest video vocabulary to accelerate the world’s transition to video-first expression. Lomotif, available in the Apple and Google stores, is a downloadable app that has grown worldwide as a grassroots social community with dedicated users spanning from Asia to South America to the U.S. For additional information about Lomotif, please visit Lomotif’s website at www.lomotif.com.

About Cryptyde

Cryptyde, Inc. (anticipated: TYDE), is focused on leveraging blockchain technologies to disrupt consumer facing industries.

About Vinco Ventures

Vinco Ventures, Inc. (BBIG) is focused on the development of digital media and content technologies. Vinco Ventures’ consolidated subsidiary, ZVV Media Partners, LLC, a joint venture of Vinco Ventures and ZASH Global Media and Entertainment Corporation, has an 80% ownership interest in Lomotif Private Limited. For more information visit Investors.vincoventures.com.

Forward-Looking Statements and Disclaimers

This press release contains “forward-looking statements” as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which are based upon beliefs of, and information currently available to, Vinco Ventures’ management as well as estimates and assumptions made by Vinco Ventures’ management. These statements can be identified by the fact that they do not relate strictly to historic or current facts. When used in this presentation the words “estimate,” “expect,” “intend,” “believe,” “plan,” “anticipate,” “projected,” and other words or the negative of these terms and similar expressions as they relate to the applicable company or its management identify forward-looking statements. Such statements reflect the current view of Vinco Ventures with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to Vinco Ventures and its subsidiaries and consolidated variable interest entities including Lomotif, their industry, financial condition, operations and results of operations. Such factors include, but are not limited to, uncertainties as to the completion and timing of the merger between Vinco Ventures and ZASH Global Media and Entertainment Corporation, the expected benefits from Vinco Ventures’ investments in Lomotif and related growth initiatives including anticipated acquisition of AdRizer by ZVV Media Partners and synergies between AdRizer and Lomotif, the expected benefits of Lomotif’s participation in and partnership with live entertainment events such as EDC, uncertainties as to the completion and timing of the spin-off of Cryptyde, the failure to satisfy any conditions to complete the spin-off as specified in the Form 10, the expected tax treatment of the spin-off and the impact of the spin-off on the businesses of Vinco Ventures and Cryptyde, the expected benefits for Vinco Ventures, its shareholders and Cryptyde from the recent injection of businesses and assets into Cryptyde and the spin-off, and such other risks and uncertainties described more fully in documents filed by Vinco Ventures with or furnished to the Securities and Exchange Commission, including the risk factors discussed in Vinco Ventures’ Annual Report on Form 10-K for the period ended December 31, 2020 filed on April 15, 2021, and Vinco Ventures’ Quarterly Reports on Form 10-Q filed thereafter including the Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 filed on November 22, 2021, which are available at www.sec.gov. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

# # #

Investor Relations
Aimee Carroll
T: 866-900-0992
[email protected]

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