Annual report pursuant to Section 13 and 15(d)

Basis of Presentation and Nature of Operations

v3.22.1
Basis of Presentation and Nature of Operations
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Nature of Operations

Note 1 — Basis of Presentation and Nature of Operations

 

As used herein, the terms the “Company,” “Vinco Ventures” “Vinco” “we,” “us,” “our” and similar refer to Vinco Ventures, Inc. (f/k/a Edison Nation, Inc.), a Nevada corporation incorporated on July 18, 2017 under the laws of the State of Nevada as Idea Lab X Products, Inc. and also formerly known as Xspand Products Lab, Inc. prior to its name change on September 12, 2018, and/or its wholly-owned and majority-owned operating subsidiaries. On November 5, 2020, the Company (the “Parent”) and its wholly owned subsidiary, Vinco Ventures, Inc. (the “Merger Sub”), entered into an Agreement and Plan of Merger (the “Agreement”). Under the terms of the Agreement, the Merger Sub merged with and into the Parent and the Parent became the surviving corporation of the Merger (the “Surviving Corporation”). The name of the Surviving Corporation became Vinco Ventures, Inc. The transaction closed on November 10, 2020.

 

Vinco Ventures is focused on digital media and content technologies.

 

As of December 31, 2021, Vinco Ventures wholly-owned subsidiaries included: Cryptyde, Inc. (“Cryptyde”), Cryptyde Shared Services, LLC (“Cryptyde Shared”), TBD Safety, LLC (“TBD”), Vinco Ventures Shared Services LLC (“Vinco Shared”), Ferguson Containers, Inc. (“Ferguson”), CBAV1, LLC (“CB1”), Pirasta, LLC (“Pirasta”), Honey Badger Media LLC (“Honey Badger”), EVNT Platform LLC dba Emmersive Entertainment “EVNT”), BlockHiro, LLC (“BlockHiro”) and Edison Nation Holdings, LLC. Edison Nation Holdings, LLC is the single member of Edison Nation, LLC and Everyday Edisons, LLC. Edison Nation, LLC is the single member of Safe TV Shop, LLC. Vinco Ventures owns a 50% voting membership interest in ZVV Media Partners, LLC (“ZVV”), 50% of Best Party Concepts, LLC and 75% of Global Clean Solutions, LLC, all of which are consolidated as variable interest entities (“VIEs”) with noncontrolling interests. ZVV owns 80% of the outstanding equity interests in Lomotif Private Limited (“Lomotif”). Lomotif owns 100% of Lomotif, Inc. Vinco Ventures owns a 51% voting membership interest in CW Machines, LLC (“CW”), which is consolidated under the voting interest method.

 

In April 2021, the Company agreed to unwind the joint venture of Ed Roses, LLC and recognized a loss of $586,008 on deconsolidation of the joint venture.

 

In September 2021, the Company purchased 25% of the membership interests of Global Clean Solutions, LLC and recognized a loss of $608,303 on the increase in ownership of 75% related to the carrying value of the noncontrolling interest.

 

On September 12, 2021, the Company filed Articles of Incorporation with the State of Nevada for a new wholly owned subsidiary, Cryptyde, Inc., which was subsequently converted into a Delaware corporation on March 9, 2022.

 

On September 16, 2021, Cryptyde Shares Services, LLC was formed as a wholly-owned subsidiary of Ferguson Containers, Inc.

 

On November 8, 2021, BlockHiro LLC, was formed as a wholly-owned subsidiary of Cryptyde, Inc.

 

On March 29, 2021, Ferguson Containers, Inc. became a subsidiary of Cryptyde, Inc.

 

Liquidity

 

For the year ended December 31, 2021, our operations lost $80,209,777 of which approximately $47,177,160 was non-cash and approximately 6,528,000 related to restructuring, severance, transaction costs and non-recurring items.

 

At December 31, 2021, we had total current assets of $219,741,467 and current liabilities of $70,089,546 resulting in working capital of $149,651,921. At December 31, 2021, we had total assets of $405,142,729 and total liabilities of $271,455,687 resulting in stockholders’ equity of $133,687,042. At December 31, 2021, we had a cash and cash equivalents, including restricted cash, of $187,612,176. The Company believes through the subsequent capital raise that the funds available to it are adequate to meet its working capital needs, debt service and capital requirements for the next 12 months from the date of this filing.

 

The Company received proceeds of $101,029,493 from the sale of our securities through warrant exercises subsequent to December 31, 2021.

 

Our principal sources of capital are our cash and cash equivalents, and cash generated from sale of our securities. Our principal uses of capital are operating expenses, including amounts required to fund working capital and capital expenditures, acquisition costs and capital contributions to our subsidiaries and consolidated variable interest entities. We currently anticipate that our available funds and cash flow from financing activities will be sufficient to meet our operational cash needs and fund our planned acquisitions and investments for at least the next twelve months.