Vinco Ventures (NASDAQ: BBIG), filed its much awaited form 10K on Friday. The 157 page report revealed detailed information on what the company’s current status is along with risks involved. At December 31, 2021, we had total current assets of $219,741,467 and current liabilities of $70,089,546 resulting in working capital of $149,651,921. BBIG had total assets worth $405,142,729 and total liabilities worth $271,455,687 resulting in stockholders’ equity of $133,687,042.
The Company incurred a net loss of $713,173,000 during 2021 as compared to a net loss of $5,153,000 during 2020, a 13738.8% increase. Out of the $713M, more than $656M loss was due to issuance of warrants recognized by the company.
Revenue:
For the year ended December 31, 2021, revenues from continuing operations decreased by $2,224,000 or 18.5%, as compared to the previous year. The decrease was due to the BBIG’s new line of business, including Lomotif business line and related content creation/distribution, did not generate significant revenues during 2021 as the focus was on growing Lomotif’s user bases. In February, 2022, the Company acquired AdRizer, a digital advertising company, which is expected to be integrated into the Company’s media and entertainment platforms, including Lomotif, and to facilitate generating revenue for the Lomotif business lines.
Vinco’s Gross profit increased by $33,000, or 1.3%, as compared to the year ended December 31, 2020. The increase reflected the impact of the Company replacing lost personal protection equipment sales with higher margin revenue from its Honey Badger and NFT business lines.
The $713,173,000 net loss was due to the impact of the Company’s requirement to recognize the fair value of warrants that the Company issued and the change in fair values of exercised and outstanding warrants during 2021. The total impact of warrant accounting was a net other expense of $561,686,000.
Loss on Disposal of Assets and Interests in VIE’s
During 2021, the Company experienced a wide range of prices from a low of $1.24 and high of $10.82 per share, which can have a significant impact on the fair market value of the Company’s warrants and equity compensation instruments of their grant dates, vesting dates and exercise dates. In the aggregate, these two cost elements constituted 84.8% of the Company’s net loss during 2021. The remaining increase in net loss during 2021 was driven by the increased size of the Company due to ZVV’s acquisition of an 80% equity interest in Lomotif and its transition into a media and entertainment Company, which caused the Company to increase its headcount, its sales and marketing activities, and its legal and professional fees incurred in connection with its acquisitions, contracts and proposed spin-off activities.
Cash Flow
During 2021, had $187,612,000 in cash and cash equivalents, which included $100,000,000 held in a restricted cash account. Net cash used in operating activities was $47,507,000, which included a net loss of $715,229,000. Net cash used in investing activities was $118,644,000 and $1,648,000 for the years ended December 31, 2021 and 2020. And cash provided by financing activities for the year ended December 31, 2021 totalled $353,514,000.
Liquidity
As of December 31, 2021 the New York based company had total assets worth $405,142,729 (a 1114.1% increase from 2020) and $271,455,687 (952.5% increase from 2020) worth of Liabilities. The Company received proceeds of $101,029,493 from the sale of our securities through warrant exercises subsequent to December 31, 2021.
Outlook:
The New York based company anticipates that the available funds and cash flow from financing activities will be sufficient to meet Vinco’s operational cash needs and fund its planned acquisitions and investments for at least the next twelve months.
Cryptyde:
No significant updates on Cryptyde were provided in the filing.
Cryptyde’s initial filing was completed on November 8, 2021 and subsequent amendments were filed on January 25, 2022 and March 18, 2022 respectively. Cryptyde currently holds Vinco’s packaging, Bitcoin mining services, and Web3 (decentralized internet) product businesses.
Cryptyde also expects competition for its new video game. Freespace, expected to launch in 2022, with companies including Decentraland, Sandbox and Fluf World. With respect to Cryptyde’s Bitcoin Mining Services Business, its competitors include Compass Mining, Miners Dep, and Alliance.
What does Vinco Ventures own?
As of December 31, 2021, Vinco Ventures wholly-owned subsidiaries included: Cryptyde, Inc. (“Cryptyde”), Cryptyde Shared Services, LLC (“Cryptyde Shared”), TBD Safety, LLC (“TBD”), Vinco Ventures Shared Services LLC (“Vinco Shared”), Ferguson Containers, Inc. (“Ferguson”), CBAV1, LLC (“CB1”), Pirasta, LLC (“Pirasta”), Honey Badger Media LLC (“Honey Badger”), EVNT Platform LLC dba Emmersive Entertainment “EVNT”), BlockHiro, LLC (“BlockHiro”) and 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 75% of Global Clean Solutions, LLC, all of which are consolidated as variable interest entities (“VIEs”) with noncontrolling interests. ZVV owns 80% of the outstanding equity interests in Lomotif Private Limited (“Lomotif”). Lomotif owns 100% of Lomotif, Inc. Vinco Ventures owns a 51% voting membership interest in CW Machines, LLC (“CW”), which is consolidated under the voting interest method.
Earnings Call:
Vinco Ventures will hold its Fourth Quarter and Full Year 2021 Conference Call on April 18, 2022 at 8:30am EDT.
