Vinco Ventures, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (Tables)

Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020:

	September 30, 2020		December 31, 2019
	(Unaudited)

Assets
Current assets:
Cash and cash equivalents	$	114,875	$	6,234
Accounts receivable, net		906,020		21,697
Inventory		249,896		51,090
Prepaid expenses and other current assets		1,072,378		379,561
Total current assets		2,343,169		458,582
Property and equipment, net		19,671		32,661
Total assets	$	2,362,840	$	491,243

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	198,704	$	337,648
Accrued expenses and other current liabilities		80,631		-
Deferred revenues		857,500		-
Line of credit, net of debt issuance costs of $0 and $15,573, respectively		1,153,800		-
Notes payable, current		150,000		-
Due to related party		315,666		315,666
Total current liabilities		2,756,301		12,973,319

The following table presents the operations of entities that are VIEs and consolidated by the Company at September 30, 2020:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Revenues, net	$	184,715		$	80,120		$	1,459,192		$	285,542
Cost of revenues		69,191			49,590			1,064,114			124,659
Gross profit		115,524			30,530			395,078			160,883

Operating expenses:
Selling, general and administrative		91,114			100,961			294,676			192,699
Operating income		24,410			(70,431	)		100,402			(31,816	)

Other (expense) income:
Interest expense		(73,840	)		-			(130,796	)		-
Total other (expense) income		(73,840	)		-			(130,796	)		-
Loss before income taxes		(49,430	)		(70,431	)		(30,394	)		(31,816	)
Income tax expense		-			-			-			-
Net (loss) income	$	(49,430	)	$	(70,431	)	$	(30,394	)	$	(31,816	)

- 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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