Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.21.2
Discontinued Operations
9 Months Ended
Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 15 — Discontinued Operations

 

Discontinued operations are accounted for in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 360-10-35 Property, Plant and Equipment. In accordance with FASB ASC Section 360-10-35, the net assets of discontinued operations are recorded on our consolidated balance sheets at carrying value. The results of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations in our consolidated statements of loss and comprehensive loss.

 

On March 12, 2021, the bankruptcy court approved the sale of the CBAV1, LLC Assets to BTL Diffusion SARL, the winning bidder, at the auction held on March 10, 2021 and March 11, 2021 for a total sum of $3,000,000, which includes a cash payment at closing in the amount of $2,650,000, less certain closing costs and credits, and additional royalty payments in the amount of $150,000 on April 15, 2022 and in the amount of $200,000 on April 15, 2023 (“CBAV1-BTL Transaction”).

 

A first closing of the CBAV1-BTL Transaction occurred on April 16, 2021, with the transfer of assets and release of funds completed on April 21, 2021 (“Final Closing”). Contemporaneously with the Final Closing, a certain license agreement between CBAV1 and Edison Nation, LLC (“Edison Nation”) terminated and any remaining operational assets of Edison Nation were transferred to BTL.

 

On November 30, 2020, the Company (the “Seller”) and its wholly owned subsidiary, SRM Entertainment, LTD (“SRM”) entered into a Stock Exchange Agreement (the “Exchange Agreement”) with Jupiter Wellness, Inc. (“Jupiter”)(the “Buyer”). Under the terms of the Exchange Agreement, the Buyer agreed to purchase all outstanding shares of common stock (the “Exchange Shares”) issued by SRM from the Seller. As consideration for the purchase of the Exchange Shares, the Buyer agreed to exchange 200,000 shares of its restricted common stock (the “Consideration Shares”), symbol JUPW as listed on NASDAQ Capital Markets. The Company made the decision to divest the amusement park business due to the slow re-openings of amusement parks around the world and the investment that would have been needed to remain open and the investment required to relaunch as the amusement parks begin to get back to full capacity.

 

The following table presents the carrying values of the assets and liabilities of our discontinued operations at September 30, 2021 and December 31, 2020, respectively:

 

   

September 30,

2021

   

December 31,

2020

 
             
Assets                        
Current assets:                
Accounts receivable, net   $ -     $ 220,964  
Inventory     -       559,737  
Prepaid expenses and other current assets     -       261,980  
Total current assets     -       1,042,680  
Intangible assets, net     -       5,739,524  
Total assets   $ -     $ 6,782,204  
                 
Liabilities and stockholders’ equity                
Current liabilities:                
Accounts payable   $ -     $ 487,454  
Total current liabilities   $ -     $ 487,454  

 

The following table presents the summary results of operations of our discontinued operations for the three and nine months ended September 30, 2021 and 2020, respectively:

 

    2021     2020     2021     2020  
   

For the Three Months

Ended September 30,

    For the Nine Months
Ended September 30,
 
    2021     2020     2021     2020  
Revenues, net   $ -     $ 1,729,006       697,883       5,148,814  
Cost of revenues     -       1,163,630       490,195       3,103,171  
Gross profit     -       565,376       207,688       2,045,643  
                                 
Operating expenses:                                
Selling, general and administrative     -       856,883       385,888       2,253,011  
Operating income     -       (291,507 )     (178,200 )     (207,366 )
                                 
Other (expense) income:                                
(Loss) gain on disposal     (153,320 )     -       (4,933,900 )     4,911,760  
Total other (expense) income     (153,320 )     -       (4,933,900 )     4,911,760  
(Loss) income before income taxes     (153,320 )     (291,507 )     (5,112,100 )     4,704,394  
Income tax expense     -       -       -       -  
Net (loss) income   $ (153,320 )   $ (291,507 )     (5,112,100 )     4,704,394  

 

 

Vinco Ventures, Inc. and Subsidiaries

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS