Vinco Ventures, Inc. Reports First Quarter 2022 Financial Results

·15 min read
Vinco Ventures, Inc.
Vinco Ventures, Inc.

Fairport, NY, May 23, 2022 (GLOBE NEWSWIRE) -- Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media, advertising and content technologies holding company (“Vinco Ventures,” “Vinco,” or the “Company”), today announced its results for the first quarter ended March 31, 2022.

“Vinco continues to execute our plan to grow into a global content driven ecosystem focused on our core pillars: enrich our communities as we engage, endorse and entertain," said Vinco CEO Lisa King. “During the first quarter of 2022, we completed our acquisition of AdRizer, which represents one of the core pillars of our strategy to monetize traffic throughout the digital media spectrum and across the Vinco ecosystem. Also, during the quarter we continued our efforts to promote and expand the user base of our Lomotif app and related digital properties as we livestreamed Shaq’s Fun House event in February and the Okeechobee Music Festival in March. Live events like these allow Lomotif users around the world to enjoy distinctive, real-time events and enhance our efforts to engage, endorse, and entertain across platforms. I am very pleased with the progress we made during the quarter.”

Operational Highlights:

  • Vinco Ventures completed the acquisition of AdRizer LLC, a provider of technology solutions that automate the use of artificial intelligence for digital advertising analytics and programmatic media buying, on February 11, 2022, for consideration consisting of $38 million in cash paid at closing and up to 10 million shares of common stock of the Company issuable on January 1, 2024, with certain leak-out restrictions.

  • Live-streamed the Okeechobee Music and Arts Festival on March 3-6, 2022 on the Lomotif platform. Over the three-day festival, the live stream registered 7.2 million active users on Lomotif according to Google Analytics and generated 16 million visitors on Lomotif media sites. Lomotif for the first time broke into the top 50 downloaded social apps in the U.S. market in the Apple Store alone during the festival, boosting our effort to expand in the U.S. market. Of the 7.2 million users who streamed the concert, 86% of the traffic came from YouTube through the Company’s AdRizer platform promoting the festival.

  • Live-streamed Shaquille O'Neal’s Big Game Weekend Party “Shaq's Fun House” on the Lomotif platform via an exclusive distribution arrangement with Insomniac, a producer of top music festivals and events.

  • The Company set a Record Date of May 18, 2022, for its planned spin-off of Cryptyde with the expected Distribution Date of May 27, 2022.

First Quarter 2022 Financial Highlights:

  • Revenue increased 349.7% from the first quarter of 2021 to $11.5 million reflecting the impact of the inclusion of AdRizer from its acquisition date of February 11, 2022.

  • Cash, cash equivalents, and restricted cash totaled $210.8 million at March 31, 2022.

  • Unrestricted cash at March 31, 2022 of $130.8 million.

  • Selling, general and administrative expenses from continuing operations were $26.8 million compared to $11.7 million in first quarter of 2021, an increase of $15.1 million. Of this increase, $10.4 million was due to higher legal, professional and transaction costs primarily associated with the Company’s acquisition of AdRizer. The remaining increase reflects the expanded size and scope of the Company since the first quarter of 2021, including an increase of $4.4 million in advertising, marketing and promotion costs as the Company continues to invest in building market awareness of Lomotif, and an increase of $5.2 million in compensation costs, which reflects the increase in headcount over the past year as the Company has grown internally and through the acquisition of AdRizer as well as the consolidation of the compensation costs of Lomotif since July 2021.

  • Total other income and expenses in the first quarter of 2022 were a net expense $352.9 million as compared to a net expense of $51.5 million in the first quarter of 2021. Similar to recent quarters, the significant increase in net other expense is due to the impact of the requirement that the Company classify its warrants to purchase shares of its common stock as a liability upon issuance on its consolidated balance sheets as these warrants are a free-standing financial instrument that may require the Company to transfer consideration upon exercise. Each warrant is initially recorded at fair value on the date of issuance using the Monte-Carlo simulation pricing model and subsequently re-measured to fair value at each subsequent balance sheet date. Losses on issuance and changes in fair value of outstanding warrants are recognized as a component of net other income (expense) in the consolidated statement of operations and comprehensive loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the warrants. During the first quarter of 2022, loss on issuances of warrants was $243.7, while the change in in fair value of the Company’s liability for its outstanding warrants as of March 31,2022 resulted in an expense of $86.9 million.

  • Net loss in first quarter 2022 was $372.9 million, or ($3.05) per basic and diluted share, compared to a net loss of $62.5 million, or ($3.28) per basic and diluted share in the first quarter of 2021. The increase in net loss primarily resulted from the impact of the net other expense of $330.6 million resulting from the warrant accounting requirements described above which accounted for 87% of the Company’s net loss in the first quarter of 2022 as well as transaction costs associated with the Company’s acquisition of AdRizer. Otherwise, the Company’s loss reflects the increase in the size and scope of the Company as it focuses on building its global digital media business.

Vinco Ventures, Inc. First Quarter 2022 Conference Call

Event Date: May 23, 2022

Event Time: 4:30 PM Eastern Standard Time

The audio conference call can be accessed through:

1- 877-407-2991 (U.S. participants)
1- 201-389-0925 (International participants)

A live and archived webcast presentation will be available at: https://investors.vincoventures.com/.

Conference Replay:

A teleconference replay will be available until May 30, 2022.
1- 877-660-6853 (U.S. participants)
1-201-612-7415 (International participants)
Passcode: 13730262


Vinco Ventures, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

 

March 31,
2022

 

 

December 31,
2021

 

 

 

 

 

 

 

 

Assets*

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

130,779,948

 

 

$

87,612,176

 

Restricted cash - short term

 

 

-

 

 

 

100,000,000

 

Short-term investments

 

 

220,000

 

 

 

178,000

 

Accounts receivable, net

 

 

9,117,096

 

 

 

1,124,421

 

Inventory, net

 

 

447,636

 

 

 

475,666

 

Prepaid expenses and other current assets

 

 

10,659,851

 

 

 

10,403,401

 

Loans held-for-investment- current portion

 

 

11,600,000

 

 

 

3,950,000

 

Due from related party

 

 

19,600,584

 

 

 

15,997,803

 

Total current assets

 

 

182,425,115

 

 

 

219,741,467

 

 

 

 

 

 

 

 

 

 

Restricted cash long-term

 

 

80,000,000

 

 

 

-

 

Property and equipment, net

 

 

1,785,226

 

 

 

1,376,751

 

Right of use assets, net

 

 

133,310

 

 

 

168,914

 

Loan held-for-investment

 

 

750,000

 

 

 

250,000

 

Loan held-for-investment - related parties

 

 

13,500,000

 

 

 

20,500,000

 

Intangible assets, net

 

 

39,009,383

 

 

 

40,525,453

 

Goodwill

 

 

180,419,932

 

 

 

121,580,144

 

Cost method investments

 

 

1,000,000

 

 

 

1,000,000

 

Other assets

 

 

1,655,742

 

 

 

-

 

Total assets

 

$

500,678,709

 

 

$

405,142,729

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

11,554,079

 

 

$

6,105,963

 

Accrued expenses and other current liabilities

 

 

10,600,949

 

 

 

19,516,308

 

 

 

 

 

 

 

 

 

 

Current portion of operating lease liabilities

 

 

77,231

 

 

 

100,733

 

Current portion of convertible notes payable, net of debt issuance costs of $13,343,030 and $68,911,823, respectively

 

 

19,769,795

 

 

 

44,238,177

 

Current portion of notes payable

 

 

-

 

 

 

15,530

 

Current portion of notes payable - related parties

 

 

112,835

 

 

 

112,835

 

Total current liabilities

 

 

42,114,889

 

 

 

70,089,546

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, net of current portion

 

 

58,713

 

 

 

70,514

 

Convertible notes payable - related parties, net of current portion

 

 

2,500,000

 

 

 

2,500,000

 

Notes payable -related parties, net of current portion

 

 

108,923

 

 

 

121,037

 

Convertible notes payable, net of current portion, net of debt issuance costs of $35,491,435 and $0, respectively.

 

 

44,399,079

 

 

 

-

 

Derivative liability

 

 

429,167,462

 

 

 

198,566,170

 

Deferred tax liability

 

 

108,420

 

 

 

108,420

 

Deferred acquisition purchase price

 

 

23,250,000

 

 

 

-

 

Total Liabilities

 

$

541,707,486

 

 

$

271,455,687

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 250,000,000 shares authorized; 188,052,593 and 150,118,024 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

 

$

188,053

 

 

$

150,118

 

Additional paid-in capital

 

 

1,053,407,146

 

 

 

850,096,635

 

Accumulated deficit

 

 

(1,109,769,797

)

 

 

(736,821,840

)

Total stockholders’ equity (deficit) attributable to Vinco Ventures, Inc.

 

 

(56,174,598

)

 

 

113,424,913

 

Noncontrolling interest

 

 

15,145,821

 

 

 

20,262,129

 

Total stockholders’ equity (deficit)

 

 

(41,028,777

)

 

 

133,687,042

 

Total liabilities and stockholders’ equity (deficit)

 

$

500,678,709

 

 

$

405,142,729

 


Vinco Ventures, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 

 

Three Months Ended March 31,

 

 

Period over Period Change

 

 

 

2022

 

 

2021

 

 

$

 

 

%

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer products

 

$

3,757,552

 

 

$

2,153,306

 

 

$

1,604,246

 

 

 

74.5

%

Digital advertising and media revenue

 

 

7,726,369

 

 

 

350,566

 

 

 

7,375,803

 

 

 

2104.0

%

Royalty income

 

 

50,898

 

 

 

61,290

 

 

 

(10,392

)

 

 

-17.0

%

Total revenue, net

 

 

11,534,819

 

 

 

2,565,162

 

 

 

8,969,657

 

 

 

349.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Packaging products

 

 

3,156,993

 

 

 

1,393,063

 

 

 

1,763,930

 

 

 

126.6

%

Digital advertising and media revenue

 

 

7,776,663

 

 

 

260,318

 

 

 

7,516,345

 

 

 

2887.4

%

 

 

 

10,933,656

 

 

 

1,653,381

 

 

 

9,280,275

 

 

 

561.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

601,163

 

 

 

911,781

 

 

 

-310,618

 

 

 

-34.1

%

Gross profit %

 

 

5.2

%

 

 

35.5

%

 

 

-30.3

%

 

 

-85.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation, benefits and payroll taxes

 

$

5,763,122

 

 

$

500,033

 

 

$

5,263,089

 

 

 

1052.5

%

Depreciation and amortization

 

 

1,590,209

 

 

 

424,033

 

 

 

1,166,175

 

 

 

275.0

%

Stock based compensation

 

 

1,143,445

 

 

 

8,697,502

 

 

 

(7,554,057

)

 

 

-86.9

%

Advertising, marketing and promotions

 

 

4,636,246

 

 

 

269,960

 

 

 

4,366,287

 

 

 

1617.4

%

Legal,professional fees, and transaction costs

 

 

11,764,602

 

 

 

1,414,391

 

 

 

10,350,211

 

 

 

731.8

%

Selling, general and administrative costs

 

 

1,900,483

 

 

 

354,961

 

 

 

1,545,523

 

 

 

435.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total selling, general and administrative costs

 

$

26,798,107

 

 

$

11,660,880

 

 

$

15,137,227

 

 

 

129.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(22,427,461

)

 

 

(12,694,933

)

 

 

(9,732,528

)

 

 

76.7

%

Loss on issuance of warrants

 

 

(243,681,478

)

 

 

(75,156,534

)

 

 

(168,524,944

)

 

 

224.2

%

Change in fair value of warrant liability

 

 

(86,948,858

)

 

 

36,381,542

 

 

 

(123,330,400

)

 

 

-339.0

%

Other income (expense)

 

 

149,594

 

 

 

(44,296

)

 

 

193,890

 

 

 

-437.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

$

(352,908,203

)

 

$

(51,514,221

)

 

$

(301,393,982

)

 

 

585.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

$

(379,105,147

)

 

$

(62,263,320

)

 

$

(316,841,827

)

 

 

508.9

%

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Net loss

 

 

(379,105,147

)

 

 

(62,263,320

)

 

 

(316,841,827

)

 

 

508.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to noncontrolling interests

 

 

(6,157,190

)

 

 

28,034

 

 

 

(6,185,224

)

 

 

-22063.3

%

Net loss attributable to Vinco Ventures, Inc. from continuing operations

 

 

(372,947,957

)

 

 

(62,291,354

)

 

 

(310,656,603

)

 

 

498.7

%

Net Loss from discontinued operations

 

 

-

 

 

 

(178,200

)

 

 

178,200

 

 

 

-100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Vinco Ventures, Inc.

 

$

(372,947,957

)

 

$

(62,469,554

)

 

$

(310,478,403

)

 

 

497.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Vinco Ventures, per share

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Net loss per share- continuing operations

 

$

(3.05

)

 

$

(3.28

)

 

$

0.23

 

 

 

-6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding -basic and diluted

 

 

122,176,851

 

 

 

19,055,006

 

 

 

103,121,845

 

 

 

541.2

%


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

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Cash Flow from Operating Activities

 

 

 

 

 

 

 

 

Net loss attributable to Vinco Ventures, Inc.

 

$

(372,947,957

)

 

$

(62,291,354

)

Net (loss) income attributable to noncontrolling interest

 

 

(6,157,190

)

 

 

28,034

 

Net loss

 

 

(379,105,147

)

 

 

(62,263,320

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Discontinued operations

 

 

-

 

 

 

(178,200

)

Amortization of financing costs

 

 

22,260,697

 

 

 

445,541

 

Share-based compensation

 

 

1,143,445

 

 

 

12,418,930

 

Depreciation and amortization

 

 

1,608,691

 

 

 

8,697,502

 

Amortization of right of use asset

 

 

35,604

 

 

 

24,163

 

Change in fair value of short-term investment

 

 

42,000

 

 

 

70,000

 

Loss on issuance of warrants

 

 

243,681,478

 

 

 

75,156,534

 

Change in fair value of warrant liability

 

 

86,948,858

 

 

 

(36,381,542

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,428,136

)

 

 

(494,130

)

Inventory

 

 

28,030

 

 

 

(215,717

)

Prepaid expenses and other assets

 

 

(5,384,663

)

 

 

139,635

 

Accounts payable

 

 

(1,835,876

)

 

 

(804,282

)

Accrued expenses and other liabilities

 

 

(9,009,264

)

 

 

(755,224

)

 

 

 

 

 

 

 

 

 

Net Cash used in Operating Activities

 

 

(42,014,284

)

 

 

(4,140,110

)

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Issuance of loans held-for-investment-related parties

 

 

-

 

 

 

(5,000,000

)

Issuance of loans held-for-investment

 

 

(500,000

)

 

 

(7,000,000

)

Purchases of property and equipment

 

 

(326,563

)

 

 

(18,228

)

Purchase of intangible assets

 

 

-

 

 

 

-

 

Acquisition of business, net of cash acquired (Note 3)

 

 

(34,850,576

)

 

 

-

 

Net Cash used in Investing Activities

 

 

(35,677,139

)

 

 

(12,018,228

)

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Net repayments under line of credit

 

 

-

 

 

 

(379,333

)

Net (repayments) borrowings under convertible notes payable

 

 

(150,000

)

 

 

19,720,000

 

Net borrowings under notes payable

 

 

-

 

 

 

73,000

 

Net repayments under notes payable

 

 

(27,644

)

 

 

(2,141,782

)

Net repayments under notes payable - related parties

 

 

-

 

 

 

(659,999

)

Fees paid for financing costs

 

 

-

 

 

 

(122,762

)

Net proceeds from exercise of warrants

 

 

101,036,839

 

 

 

1,690,604

 

Net proceeds from issuance of common stock

 

 

-

 

 

 

3,255,000

 

 

 

 

 

 

 

 

 

 

Net Cash provided by Financing Activities

 

 

100,859,195

 

 

 

21,434,728

 

Net Increase in Cash and Cash Equivalents

 

 

23,167,772

 

 

 

5,276,390

 

Cash and Cash Equivalents - Beginning of Period

 

 

187,612,176

 

 

 

249,356

 

Cash and Cash Equivalents - End of Period

 

$

210,779,948

 

 

$

5,525,746

 

 

 

 

 

 

 

 

About Vinco Ventures

Vinco Ventures, Inc. (Nasdaq: BBIG) is a digital media, advertising and content technologies holding company. Vinco Ventures’ consolidated subsidiary, ZVV Media Partners, LLC, a joint venture of Vinco Ventures and ZASH Global Media and Entertainment Corporation, has an 80% ownership interest in Lomotif Private Limited. Vinco Venture owns 100% of Adrizr LLC and 51% of PZAJ Holdings, LLC. For more information visit https://investors.vincoventures.com/

About Lomotif

Lomotif is a video-sharing social networking platform that is democratizing video creation. A home for creators since 2014, Lomotif hosts a grassroots social community with dedicated users in Asia, Latin America and the United States. Lomotif is 80% owned by ZVV Media Partners, LLC, a joint venture of ZASH Global Media and Entertainment Corporation and Vinco Ventures, Inc. (Nasdaq: BBIG). Download the Lomotif app from Apple and Google stores or visit www.lomotif.com for more information.

About Cryptyde

Cryptyde, Inc. (anticipated: TYDE), is focused on leveraging blockchain technologies to disrupt consumer facing industries.

Forward-Looking Statements and Disclaimers

This press release contains “forward-looking statements” as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which are based upon beliefs of, and information currently available to, Vinco Ventures’ management as well as estimates and assumptions made by Vinco Ventures’ 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 applicable company or its management identify forward-looking statements. Such statements reflect the current view of Vinco Ventures with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to Vinco Ventures and its subsidiaries and consolidated variable interest entities including Lomotif, their industry, financial condition, operations and results of operations. Such factors include, but are not limited to, the expected benefits from Vinco Ventures’ investments in Lomotif and related growth initiatives and strategies such as the blended media, cross-platform distribution strategy, the expected benefits of Lomotif’s participation in and sponsorship of live entertainment events, the expected benefits from acquisition of AdRizer and planned integration of the AdRizer technology with Lomotif and Honey Badger and synergies between AdRizer, Lomotif and Honey Badger, uncertainties as to the completion and timing of the spin-off of Cryptyde, the failure to satisfy any conditions to complete the spin-off as specified in the Form 10, the expected tax treatment of the spin-off and the impact of the spin-off on the businesses of Vinco Ventures and Cryptyde, the expected benefits for Vinco Ventures, its shareholders and Cryptyde from the recent injection of businesses and assets into Cryptyde and the spin-off, the regulatory risks with the NFT and blockchain business lines and such other risks and uncertainties described more fully in documents filed by Vinco Ventures and Cryptyde with or furnished to the Securities and Exchange Commission, including the risk factors discussed in Vinco Ventures’ Annual Report on Form 10-K for the period ended December 31, 2021 filed on April 15, 2022 and Quarterly Report on Form 10-Q for the period ended March 31, 2022 filed on May 23, 2022, as well as Cryptyde’s Amendment No. 2 of Form 10 filed on March 18, 2022, which are available at www.sec.gov. 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 we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

# # #

Investor Relations
Monica Gould
212-871-3927

Gregory McNiff
415-217-4963
investors@vincoventures.com


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting