Vinco Ventures Global Technologies Inc. (NASDAQ: BBIG), the executor of the B.I.G strategy, has recently gained substantial popularity. The year 2021 was a crucial period for the company. Therefore, let’s look at what all the organization achieved, lost or faced during the last year.
BBIG Stock Performance
The BBIG stock has lately been in talks because it dropped substantially. Moreover, even though the stock is worth just a few dollars, analysts have estimated that it might reach new heights soon. The stock opened at $1.3 and closed at $1.25, losing 9.42% during the trading session on January 4, 2021. The BBIG stock at the end of the year closed at $2.38 dropping by 7.03% (down by 0.18 points). Moreover, since the beginning of the year stock has gained substantially. It shows an increase of 90.4% year-to-date. The current market capitalization is valued at $324.8 million.
The stock down more than 21% on December 29, 2021, compared to the same day last week, where it opened at $3.18 and down around 19% since the beginning of this month. BBIG was trading around the $3 mark for most of December, occasionally dipping below $3 – only to rise back up. The past two weeks haven’t been kind to the stock either. The market-wide sell-off due to the emergence of the Omicron variant has taken a big hit on many stocks.
However, in September 2021, the BBIG stock sky-rocketed above $12. Although the company reported a wider than expected loss during its Q3 results, the recent issuance of warrants has guaranteed them a $40 million cash injunction that would help to keep them afloat for a while.
Reason for Sluggish Performance
One of the main reasons BBIG is unable to hold its value during these bearish times is the lack of news from the executive management. Investors are still waiting for more details on the announced Vinco-Zash merger, Cryptyde’s (TYDE) launch date & its share distribution, and Adrizer deal details. And this directly links to the trading volume – which is needed to hold the stock value. There is not enough volume for the stock to hold its value. There was only one day in December 2021 where BBIG had more daily volume than its average volume of 27.06 million.
Analyst stock estimate
Ahead of its third quarter earnings call, some analysts estimated BBIG stock prices to go up till $40. Moreover, the same hope could be seen when it was priced at $3.91, up by 2.72%, a few hours before the trading session on November 23, 2021, ended. At the end of market hours, it was diced to $3.13, up by 1.30%. The market capitalization was valued at $486 million. That day, it touched its peak of $4.26, which shows its bullish approach. It might achieve analysts’ set target in the near future.
Vinco Ventures’ Earnings
FY21 First Quarter
The company reported first quarter earnings for FY21 on May 25, 2021. The reported loss per share was $1.23, which it showed a huge decline of 310% quarter-over-quarter. However, the GAAP EPS (Earnings Per Share) was $0.82, which was higher than the reported figure. Also, it showed a whopping growth of 373.3% than the previous quarter’s GAAP loss per share of $0.30. The reported revenue was $2.57 million which showed a huge decline of 39.5% from the FY20’s fourth-quarter revenue if $4.25 million.
FY21 Second Quarter
BBIG reported second quarter earnings for FY21 on August 23, 2021. The reported loss per share was $0.23, however, it showed a huge growth of 81% quarter-over-quarter. However, the GAAP EPS (Earnings Per Share) was $4.67, much higher than the reported figure. Also, it showed a huge growth of 82.4% than the previous quarter’s GAAP EPS of $0.82. The reported revenue was $2.69 million which showed a mere 4.46% increase quarter-over-quarter.
FY21 Third Quarter
Vinco Ventures reported a revenue of $2.2 million for the third quarter of FY21. The loss per share was $7.09 and the net loss was $542 million. For the nine months ended September 30, 2021, Vinco Ventures’ operations lost approximately $40 million of which approximately $21 million was non-cash and approximately $6.5 million was related to transaction costs and other non-recurring items.
At September 30, 2021, the total current assets of approximated at $174 million and current liabilities of approximated to $37 million resulting in working capital of approximately $137 million, of which $28,481,485 was convertible notes payable. At September 30, 2021, we had total assets of $336 million and total liabilities of $508 million of which $468 million was related to the warrant liabilities, resulting in stockholders’ deficit of $171,999,206. The company received proceeds of $45,959,160 from sale of our securities subsequent to September 30, 2021.
Bitcoin Venture Spin-off
Vinco Ventures, Inc. announced on November 1, 2021 that its spin off subsidiary Cryptyde launched a joint venture, CW Machines, in accordance with Wattum management. Wattum is a leading international supplier of BTC mining equipments and services.
“The launch of this joint venture entity signifies the start of our expansion into the broader crypto and blockchain market. We are excited to be working with industry vetarans such as the Wattum Management team and and look forward to the introduction of NFT’s and smart contracts into the BTC Mining space.”– said Cryptyde CEO Brian McFadden
CW Machines LLC’s operations launched with an initial order of 2000 Bitmain Antminer S19’s paired with US based power allocations.
On November 8, 2021 it filed Form 10 for its venture which included the following clauses –
- Distribution ratio in the spin-off is 1 share of Cryptyde common stock for every 10 shares of Vinco common stock.
- Distribution is currently anticipated to be tax free.
- Currently expected number of outstanding shares of Cryptyde common stock is approximately 19 million.
This venture was all set to aid the company’s operations. This was because, cryptocurrencies and the largest crypto- Bitcoin, have almost become a household name. This can be understood by the fact that Bitcoin almost soared to $70,000 this month. Not only this many cryptos surged more than expected. Therefore, this business opportunity was set for a fruitful outcome.
However, a month after the announcement, crypto-market’s performance was disappointing. The whole market crashed on December 3, 2021, and have been declining thereafter. Moreover, the subtle rebounds didn’t help much. This might have negatively affected this venture.
As of September 30, 2021, Vinco Ventures wholly-owned subsidiaries included:
- Cryptyde, Inc. (“Cryptyde”),
- Cryptyde Shared Services, LLC (“Cryptyde Shared”),
- CW Machines, LLC (“CW”), TBD Safety, LLC (“TBD”),
- Vinco Ventures Shared Services LLC (“Vinco Shared”),
- Ferguson Containers, Inc. (“Fergco”),
- CBAV1, LLC (“CB1”),
- Pirasta, LLC (“Pirasta”),
- Honey Badger Media LLC (“Honey Badger”),
- EVNT Platform LLC (“Emmersive Entertainment”)
- Edison Nation Holdings, LLC
Edison Nation Holdings, LLC is the single member of Edison Nation, LLC and Everyday Edisons, LLC. Edison Nation, LLC is the single member of Safe TV Shop, LLC. Vinco Ventures owns a 50% voting membership interest in ZVV Media Partners, LLC (“ZVV”), 50% of Best Party Concepts, LLC and 50% of Global Clean Solutions, LLC, all of which are consolidated as VIE’s with noncontrolling interests. ZVV owns 80% of Lomotif Private Limited (“Lomotif”). Lomotif owns 100% of Lomotif, Inc.
It will be intriguing to see how the company is going to perform in the near future. Also, will it recover the losses it suffered or not.