Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

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Stockholders’ Equity
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Stockholders’ Equity

Note 15 — Stockholders’ Equity

 

Common Stock

 

For the period ending September 30, 2022, the Company reported it was authorized to issue 250,000,000 shares of common stock. As of September 30, 2022 and December 31, 2021, there were 238,187,660 and 150,118,024 shares of common stock issued and outstanding, respectively.

 

During the nine months ended September 30, 2022, warrant shares of 180,585,391 were exercised and the Company received proceeds of $101,036,838. During the three months ended September 30, 2022, warrant shares of 82,260,699 were settled and the Company did not receive any proceeds.

 

On October 14, 2022, the Company filed an amendment to its Articles of Incorporation to reallocate its previously authorized 250 million shares of stock as 245 million shares of Common Stock and 5 million shares of Preferred Stock, which Preferred Stock may be issued upon the subsequent filing with the Nevada Secretary of State of one or more certificates of designation for series of preferred stock. It subsequently amended the filing to be 249 million shares of Common Stock and 1 million shares of Series A perpetual non-convertible preferred stock of the Company designated as Series A Preferred Stock.

 

Preferred Stock

 

The Company is authorized to issue 1,000,000 shares of preferred stock, with the par value to be established upon issuance.

 

Stock-Based Compensation

 

On September 4, 2021, the Company’s board of directors approved the Vinco Ventures, Inc. 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the issuance of up to 9,000,000 (3,267,040 remaining as of September 30, 2022) shares of Common Stock to help align the interests of management and our stockholders and reward our executive officers for improved Company performance. Stock incentive awards under the 2021 Plan can be in the form of stock options, performance awards and restricted stock that are made to employees, directors and service providers. Awards are subject to forfeiture until vesting conditions have been satisfied under the terms of the award. The exercise price of stock options is equal to the fair market value of the underlying Common Stock on the date of grant.

 

 

The following table summarizes stock option awards outstanding as of September 30, 2022:

  

    Shares     Weighted
Average
Exercise
Price		     Remaining
Contractual
Life in
Years		     Aggregate Intrinsic Value  
Balance, December 31, 2021     80,000     $ 7.01       1.4       -  
Granted     -     $ -       -       -  
Forfeited     80,000     $ -       -       -  
Balance, September 30, 2022     -     $ -       -       -  
Exercisable, September 30, 2022     -     $ -       -       -  

 

As of September 30, 2022, there were no unvested options to purchase shares of the Common Stock and there was no unrecognized equity-based compensation expense that the Company expected to recognize over a remaining weighted-average period.

 

Lomotif has a stock option plan for their employees. The 2021 Equity Incentive Plan is intended to help Lomotif to secure and retain qualified resources. The Plan has 465,827 reserved shares.

 

Net Earnings or Loss per Share

 

Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of vested common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number vested of common shares, plus the net impact of common shares (computed using the treasury stock method), if dilutive, resulting from the exercise of dilutive securities. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. As of September 30, 2022 and 2021, the Company excluded the common stock equivalents summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. The potential dilution from common stock equivalents is computed using the treasury stock method based on the average market value of our common stock during the period.

 

For the three and nine month period ending September 30, 2022, due to reported net losses of $167,296,644 and $410,563,725, the calculation of our diluted weighted-average common shares outstanding excludes all common stock equivalents as the effect would be anti-dilutive.

   

    September 30, 2022     December 31, 2021  
    As of  
    September 30, 2022     December 31, 2021  
             
Shares reserved in exchange for the cancellation of certain non-voting membership interest in EVNT Platform, LLC     -       4,000,000  
Options     -       80,000  
Convertible shares under notes payable     20,014,454       28,274,454  
Warrants     17,011,065       107,942,653  
Total     37,025,519       140,297,107