Vinco Ventures, Inc. Reports First Quarter 2022 Financial Results
Vinco Ventures (NASDAQ:BBIG) reported Q1 2022 results with a 349.7% revenue increase to $11.5 million, driven by the AdRizer acquisition. However, net loss widened to $372.9 million or ($3.05) per share, primarily due to $352.9 million in net expenses, mostly from warrant liabilities. Cash reserves stand at $210.8 million. Selling, general, and administrative expenses rose to $26.8 million compared to $11.7 million in the previous year, largely due to legal fees linked to the acquisition. The company aims for growth around its Lomotif app and has announced a spin-off of Cryptyde, with a record date of May 18, 2022.
- Revenue increased 349.7% year-over-year to $11.5 million.
- Completed acquisition of AdRizer, boosting traffic monetization.
- Lomotif saw 7.2 million active users during the Okeechobee Music Festival.
- Net loss of $372.9 million, significantly higher than the prior year's loss.
- Selling, general and administrative expenses increased by $15.1 million.
- Net expense from warrant liabilities reached $352.9 million.
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 for87% 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 | 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 | 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, | $ | 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
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
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
FAQ
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