Vinco Ventures, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Variable Interest Entities (Tables)

Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table presents the carrying values of the assets and liabilities of entities that are VIEs and consolidated by the Company at December 31, 2021 and 2020:

	2021		2020

Assets
Current assets:
Cash and cash equivalents	$	1,856,017	$	10,481
Accounts receivable, net		-		94,195
Inventory		-		240,158
Prepaid expenses and other current assets		2,388,893		-
Due from related party		15,997,803		-
Total current assets		20,242,713		344,834
Property and equipment, net		147,519		-
Loans held-for investment		3,100,000		-
Loans held-for-investment – related parties		11,500,000		-
Intangible assets, net		28,150,048		-
Goodwill		116,188,021		-
Cost method investment		1,000,000		-
Total assets	$	180,328,301	$	344,834

Liabilities
Current liabilities:
Accounts payable	$	686,674	$	217,558
Accrued expenses and other current liabilities		1,672,492		113,576
Line of credit		-		1,133,652
Notes payable, current		2,650,000		150,000
Due to related party		315,666		315,666
Total liabilities		5,324,832		1,930,452

The following table presents the operations of entities that are VIEs and consolidated by the Company for the years ending December 31, 2021 and 2020:

	2021			2020
Revenues, net	$	307,339		$	1,571,017
Cost of revenues		93,685			2,092,167
Gross profit		213,654			(521,150	)

Operating expenses:
Selling, general and administrative		14,494,091			413,217
Operating income		(14,280,437	)		(934,367	)

Other (expense) income:
Other income, net		364,046			(174,396	)
Total other (expense) income		(13,916,391	)		(174,396	)
Loss before income taxes		(13,916,391	)		(47,578	)
Income tax expense		-			-
Net (loss) income	$	(13,916,391	)	$	(1,108,763	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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