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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

August 23, 2021 GMT

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.

Companyto Host Second Quarter2021EarningsConference 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.

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

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  • 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