Vinco Ventures, Inc. Reports Financial Results for the Second Quarter Ended June 30, 2021

Bethlehem, P.A., Aug. 23, 2021 (GLOBE NEWSWIRE) -- Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media merger and acquisitions company, today announced results for the second quarter ended June 30, 2021.

Company to Host Second Quarter 2021 Earnings Conference Call on August 25, 2021

Company Highlights

  • Vinco Ventures and ZASH Global Media and Entertainment through their Joint Venture, ZVV Media Partners, LLC completes acquisition of eighty percent (80%) interest in Lomotif.
  • Lomotif has achieved a record number of Monthly Active Users (MAUs) with over 30 million MAUs according to Data Analysis Firm Sensor Tower
  • The Lomotif India initiative continues to work well with robust user growth on a monthly basis. India will remain a focus target market.
  • Vinco Ventures currently has approximately $80 million cash as of today’s date.
  • The current registered warrants (approximately 44 million) provide the Company with additional capital of more than $140 million when exercised.
  • In April of 2021, The Company acquired the assets of Emmersive Entertainment in an all-stock deal. Utilizing the Emmersive assets, the Company developed the EVNT Platform which operates the NFT Commerce site, E-NFT.com.
  • The Company recently launched recording Artist Tory Lanez album “When It’s Dark” on the E-NFT.com platform. “When It’s Dark” is the first album to go platinum on the blockchain with over 1,000,000 units sold.
  • The Company has announced the “spin out” of the EVNT Platform into its own Publicly traded company. The date of record has not been set.

Second Quarter 2021 Financial Highlights (Three Months Ended June 30, 2021):

  • For the three months ended June 30, 2021 revenue decreased to $2.69 million as compared to $5.17 million for the three months ended June 30, 2020, a 47.97% decrease. The decrease in revenue is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division.
  • For the three months ended June 30, 2021 gross profit decreased by $198,424 as compared to the three months ended June 30, 2020 gross profit, a decrease of 16.97%. The decrease in gross profit is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division.
  • For the three months ended June 30, 2021 gross margin increased to 36.06% as compared to the three months ended June 30, 2020 gross margin of 22.59%. The lower margins in the prior period are due to revenues from the lower margin Edison Nation Medical division.

Second Quarter 2021 Financial Summary Revenue (Six Months Ended June 30, 2021):

  • For the six months ended June 30, 2021 revenue decreased to $5.26 million as compared to $7.13 million for the six months ended June 30, 2020, a 26.24% decrease. The decrease in revenue is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division.
  • For the six months ended June 30, 2021 gross profit increased by $123,730 as compared to the six months ended June 30,2020 gross profit, an increase of 7.04%.
  • For the six months ended June 30, 2021 gross margin increased to 35.81% as compared to the six months ended June 30, 2020 gross margin of 24.68%. The lower margins in the prior period are due to revenues from the lower margin Edison Nation Medical division.

Net Loss

  • Net loss in the second quarter of 2021 was $183.89 million, or ($5.13) per basic and diluted share, compared to a net loss of $1.62 million, or ($0.18) per basic and diluted share in the second quarter of 2020. The increase in the net loss is primarily due to the issuance of warrants during the period.
  • Net loss for the first six months of 2020 was $246.14 million, or ($8.95) per basic and diluted share, compared to a net loss of $0.35 million, or ($0.04) per basic and diluted share in the first six months of 2021. The increase in the net loss is primarily due to the issuance of warrants during the period.

Vinco Ventures, Inc. Second Quarter 2021 Conference Call

Event Date: Wednesday August 25, 2021

Event Time: 5:00PM Eastern Standard Time

Event Duration: 60 minutes

The conference call can be accessed through the following numbers:

1- 844-602-0380 (U.S. participants)
1- 862-298-0970 (International participants)

To access the live webcast presentation, visit:
https://www.webcaster4.com/Webcast/Page/2479/42594
A webcast replay will be available until August 25, 2022.

Questions can be submitted to investors@vincoventures.com on or before 2pm on August 24, 2021.

Conference Replay:

A teleconference replay will be available until September 8, 2021.
1- 877-481-4010 (U.S. participants)
1-91 919-882-23319-882-2331 (International participants)
Passcode: 42594


Vinco Ventures, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS

    June 30,

2021
    December 31,

2020
 
      (Unaudited)          
Assets                
Current assets:                
Cash and cash equivalents   $ 74,756,573     $ 249,356  
Accounts receivable, net     2,907,002       1,382,163  
Short-term investments     895,600       1,018,000  
Inventory     852,147       1,127,725  
Prepaid expenses and other current assets     1,209,435       522,259  
Current assets of discontinued operations     -       1,042,680  
Total current assets     80,620,757       5,342,183  
Property and equipment, net     1,033,810       1,010,801  
Right of use assets, net     104,707       153,034  
Loan receivable     5,000,000       -  
Equity method investment     12,000,000       -  
Intangible assets, net     16,533,373       9,798,813  
Goodwill     5,983,852       5,983,852  
Non-current assets of discontinued operations     -       5,739,524  
Total assets   $ 121,276,499     $ 28,028,207  
                 
Liabilities and stockholders’ equity                
Current liabilities:                
Accounts payable   $ 1,791,982     $ 3,618,339  
Accrued expenses and other current liabilities     1,284,168       2,101,610  
Deferred revenues     131,578       152,040  
Current portion of operating leases liabilities     99,293       96,777  
Income tax payable     27,643       27,643  
Line of credit, net of debt issuance costs of $0 and $15,573, respectively     1,133,652       1,500,953  
Current portion of convertible notes payable, net of debt issuance costs of $6,666,667 and $0, respectively     3,333,333       577,260  
Current portion of notes payable, net of debt issuance costs of $0 and $212,848, respectively     15,185       1,301,212  
Current portion of notes payable – related parties     876,500       1,389,923  
Due to related party     15,401       32,452  
Current liabilities of discontinued operations     120,729       487,454  
Total current liabilities     8,829,464       11,285,663  
Operating leases liabilities –net of current portion     8,483       58,713  
Convertible notes payable – related parties, net of current portion, net of debt discount of $172,984 and $366,666, respectively     267,183       1,161,495  
Notes payable, net of current portion     19,966       595,879  
Notes payable – related parties, net of current portion     -       1,403,756  
Warrant liability     139,695,115       -  
Total liabilities   $ 148,820,211     $ 14,505,506  
Commitments and Contingencies (Note 12)             -  
                 
Stockholders’ equity                
Preferred stock, $0.001 par value, 30,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively    $ -     $ -  
Series B Preferred Stock, $0.001 par value, 1,000,000 shares authorized; 0 and 764,618 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively     -       765  
                 
Common stock, $0.001 par value, 250,000,000 shares authorized 59,927,241 and 14,471,403 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively     59,927       14,471  
Additional paid-in-capital     244,026,879       39,050,260  
Accumulated deficit     (269,787,198 )     (23,648,898 )
Total stockholders’ (deficit) equity attributable to Vinco Ventures, Inc.     (25,700,392 )     15,416,598  
Noncontrolling interests     (1,843,320 )     (1,893,897 )
Total stockholders’ equity     (27,543,712 )     13,522,701  
Total liabilities and stockholders’ equity   $ 121,276,499     $ 28,028,207  

The accompanying notes are an integral part of these condensed consolidated financial statements.


Vinco Ventures, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                 
    For the Three Months

Ended June 30,
    For the Six Months

Ended June 30,
 
    2021

(Unaudited)
    2020

(Unaudited)
    2021

(Unaudited)
    2020

(Unaudited)
 
Revenues, net   $ 2,691,811     $ 5,173,982     $ 5,256,973     $ 7,127,328  
Cost of revenues     1,721,189       4,004,936       3,374,570       5,368,655  
Gross profit     970,622       1,169,046       1,882,403       1,758,673  
                                 
Operating expenses:                                
Selling, general and administrative     5,941,652       2,377,853       17,602,532       5,567,516  
Operating loss     (4,971,032 )     (1,208,807 )     (15,720,129 )     (3,808,843 )
                                 
Other (expense) income:                                
Rental income     28,703       25,703       54,407       51,407  
Interest expense     (2,715,481 )     (847,154 )     (15,410,414 )     (1,571,111 )
Loss on issuance of warrants     (133,699,181     -       (208,855,715 )     -  
Change in fair value of warrant liability     (37,154,989     -       (773,447 )     -  
Change in fair value of short-term investment     (52,000 )     -       (122,000 )     -  
Loss on disposal of interest in joint venture     (301,645 )     -       (301,645 )     -  
Gain on divestiture     -       -       -       -  
Total other (expense) income     (173,894,593 )     (821,451 )     (225,408,814 )     (1,519,704 )
Loss before income taxes     (178,865,623 )     (2,030,258 )     (241,128,943 )     (5,328,547 )
Income tax expense     -       -       -       -  
Net loss from continuing operations   $ (178,865,623 )   $ (2,030,258 )   $ (241,128,943 )   $ (5,328,547 )
Net income (loss) attributable to noncontrolling interests     22,543       22,241       50,577       22,241  
Net loss from continuing operations attributable to Vinco Ventures, Inc.     (178,888,166 )     (2,052,499 )     (241,179,520 )     (5,350,788 )
Net loss from discontinued operations     (4,780,580     428,119       (4,958,780 )     4,995,900   
Provision for income taxes for discontinued operations      -        -       -       -  
Net loss attributable to Vinco Ventures, Inc.   (183,668,746   $  (1,624,380   $ (246,138,300 )   $ (354,888 )
Net loss per share:                                
Net (loss) income per share - basic   $ (5.13 )   $ (0.18 )   $ (8.95 )   $ (0.04 )
Net (loss) income per share - diluted   $ (5.13   $ (0.18 )   $ (8.95   $ (0.04
Weighted average number of common shares outstanding – basic and diluted     35,831,466       8,920,554       27,489,580       8,551,012  

The accompanying notes are an integral part of these condensed consolidated financial statements.


Vinco Ventures, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

             
    Six Months Ended June 30,  
    2021

(Unaudited)
    2020

(Unaudited)
 
Cash Flow from Operating Activities                
Net loss from continuing operations attributable to Vinco Ventures, Inc.   $ (241,179,520 )   $ (5,350,788 )
Net income attributable to noncontrolling interests     50,577       22,241  
Net loss from continuing operations     (241,128,943 )     (5,328,547 )
Adjustments to reconcile net (income) loss to net cash used in operating activities:                
Discontinued operations     (4,958,780 )     4,995,900  
Depreciation and amortization     1,081,623       612,406  
Amortization of financing costs     15,597,936       1,227,046  
Stock-based compensation     10,003,767       1,588,427  
Amortization of right of use asset     48,327       153,820  
Gain on debt extinguishment     (852,352     -  
Loss on disposal of discontinued operations     4,130,580       (4,911,760
Change in fair value of short-term investments     122,400       -  
Loss on issuance of warrants     208,855,715       -  
Change in fair value of warrant liability     773,447       -  
Changes in assets and liabilities:                
Accounts receivable     (1,596,881 )     (978,097 )
Inventory     169,793       178,227  
Prepaid expenses and other current assets     (378,831 )     (967,109 )
Accounts payable     (819,943 )     (344,847 )
Accrued expenses and other current liabilities     (775,082 )     1,425,622  
Operating lease liabilities     (47,714 )     (148,518 )
Due from related party     (17,050 )     9,532  
Net cash used in operating activities     (9,791,988 )     (2,487,898 )
                 
Cash Flows from Investing Activities                
Purchase of property and equipment     (88,633 )     (61,917 )
Cash received from sale of assets of CBAV 1, LLC     2,529,564       -  
Equity method investment     (12,000,000 )     -  
Funding of loan receivable     (5,000,000 )     -  
Net cash used in investing activities     (14,559,069 )     (61,917 )
                 
Cash Flows from Financing Activities                
(Repayments) borrowings under line of credit     (379,333 )     1,678,540  
Borrowings under convertible notes payable     19,720,000       1,436,000  
Borrowings under notes payable     73,000       1,767,352  
Repayments under notes payable     (2,145,475 )     (824,472 )
Repayments under notes payable- related parties     (1,951,012 )     (14,508 )
Fees paid for financing costs     (120,261 )     (143,479 )
Net proceeds from issuance of common stock     3,255,000       -  
Net proceeds from exercise of warrants     80,406,355       -  
Net cash provided by financing activities     98,858,274       3,899,433  
Net increase (decrease) in cash and cash equivalents     74,507,217       1,349,618  
Cash and cash equivalents - beginning of period     249,356       412,719  
Cash and cash equivalents - end of period   $ 74,756,573       1,762,337  
                 
Supplemental Disclosures of Cash Flow Information                
Cash paid during the period for:                
Interest   $ 858,388     $ 144,740  
Income taxes   $ (14,738 )   $ 235,725  
Noncash investing and financing activity:                
Shares issued to note holders   $ 422,672     $ -  
Conversions under notes payable   $ 12,248,507     $ 424,000  
Issuance of warrants to note holders   $ 208,855,715     $ -  
Shares reserved for EVNT, LLC   $ 7,400,000     $ -  

The accompanying notes are an integral part of these condensed consolidated financial statements.

About Lomotif

Lomotif is the leading video-sharing social networking platform that is democratizing video creation. Since the company was co-founded by video enthusiast Paul Yang in 2014, Lomotif has been granted three technology patents uniquely focused on empowering creators to share and watch short videos with ease through remix and collaboration. Yang’s bold vision is to build the world’s largest video vocabulary to accelerate the world’s transition to video-first expression. Lomotif, available in the Apple and Google stores, is a downloadable app for hip hop, rap, and urban culture across the United States and Latin America. Lomotif is one of five partners selected by Snapchat for a bi-directional integration for posting stories between the two platforms. For additional information about Lomotif Private Limited, please visit Lomotif’s website at www.lomotif.com.

About ZASH Global Media and Entertainment Corporation

ZASH Global Media and Entertainment Corporation is an evolving network of synergetic companies working together to disrupt the media and entertainment industry. For additional information about ZASH Global Media and Entertainment Corporation, please visit ZASH’s website at www.zash.global.

About Vinco Ventures, Inc.

Vinco Ventures, Inc. (BBIG) is a selective acquisitions company focused on digital media and content technologies. Vinco’s B.I.G. (Buy. Innovate. Grow.) strategy is to seek acquisition opportunities that are poised for scale and will “BE BIG”. For more information visit Investors.vincoventures.com.

Forward-Looking Statements and Disclaimers

To the extent any statements contained in this press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and the information that are based upon beliefs of, and information currently available to, the company’s management as well as estimates and assumptions made by the company’s management. These statements can be identified by the fact that they do not relate strictly to historic or current facts. When used in this presentation the words “estimate,” “expect,” “intend,” “believe,” “plan,” “anticipate,” “projected” and other words or the negative of these terms and similar expressions as they relate to the company or the company’s management identify forward-looking statements. Such statements reflect the current view of the company with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to the company’s industry, its operations and results of operations and any businesses that may be acquired by the company. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the company does not intend to update any of the forward-looking statements to conform these statements to actual results.

# # #

Investor Relations
Aimee Carroll
T: 866-900-0992
investors@vincoventures.com


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Source: Vinco Ventures, Inc.