GlobeNewswire Inc | Nov 23, 2020 05:00PM EST

November 23, 2020

Announces Third Quarter 2020 Earnings Conference Call

Bethlehem, P.A., Nov. 23, 2020 (GLOBE NEWSWIRE) -- Vinco Ventures (f/k/a Edison Nation, Inc.) (NASDAQ:BBIG), today announced results for the third quarter ended September 30, 2020.

Company Highlights

-- Revenue increased 20.34% for the three months ended September 30, 2020 versus the three months ended September 30, 2019. -- Formation of Vinco Ventures, Inc. that merged with Edison Nation, Inc., the surviving corporation being Vinco Ventures, Inc. -- Commence trading under new ticker BBIG and launched the Be Big corporate strategy: Buy, Innovate and Grow through acquisitions, and digital traffic. -- Closed on a Purchase and Sale Agreement to acquire all outstanding membership units of TBD Safety, LLC; the assets purchased, including 911 Help Now. -- Formation of Honey Badger Media, LLC a full-service content monetization company, which was launched through transactions with Honey Badger Media, LLC. -- Introduced new Chief Strategy Officer Brian McFadden, who will concentrate on the new Be Big strategy and will lead the charge on targeting acquisitions that ensures long term growth. -- Welcomed new Vice President of Branding and Media Content, Laurie Argall. Laurie has the unique ability to identify what will trend and has driven traffic to websites in excess of over 150 million unique visitors monthly. She also contributes an impressive network of influencers, content creators and celebrities.

Third Quarter 2020 Financial Summary Revenue (Three Months)

-- Third quarter 2020 revenue increased to $4.25 million as compared to $3.53 million, a 20.34% increase -- Third quarter 2020 gross profit increased by $593,696 as compared to third quarter 2019 gross profit, an increase of 60.06%. -- Third quarter 2020 gross margin increased to 37.2% as compared to third quarter 2019 gross margin of 28.0%

Third Quarter 2020 Financial Summary Revenue (Nine Months)

-- Third quarter 2020 revenue decreased to $14.80 million as compared to $15.24 million, a 2.89% decrease. -- Third quarter 2020 gross profit decreased by $4,343 as compared to third quarter 2019 gross profit, a decrease of 0.09%. -- Third quarter 2020 gross margin increased to 32.6% as compared to third quarter 2019 gross margin of 31.7%.

Net Loss

-- Net loss in the third quarter of 2020 was $2.87 million, or ($0.30) per basic and diluted share, compared to a net loss of $2.63 million, or ($0.44) per basic and diluted share in the third quarter of 2019. -- Net loss for the first nine months of 2020 was $3.20 million, or ($0.29) per basic and diluted share, compared to a net loss of $5.78 million, or ($1.00) per basic and diluted share in the third quarter of 2019.

Adjusted EBITDA

-- Adjusted EBITDA, a non-GAAP measure, totaled a negative $0.183 million in the third quarter of 2020, compared to a negative $1.317 million in the third quarter of 2019. -- Adjusted EBITDA, a non-GAAP measure, totaled negative $1.100 million in the first nine months of 2020, compared to negative $1.511 million in the first nine months of 2019.

See below, under the heading Use of Non-GAAP Financial Information, for a discussion of Adjusted EBITDA and a reconciliation of such measure to the most comparable measure calculated under U.S. generally accepted accounting principles (GAAP).

Three Months Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Net (loss) $ (2,871,483 ) $ (2,631,204 ) $ (3,204,130 ) $ (5,784,666 )income Interest 1,004,624 349,172 2,575,735 875,036 expense, netIncome tax - - - 74,200 expenseDepreciationand 326,437 318,449 938,843 952,019 amortizationEBITDA (1,540,422 ) (1,963,583 ) 310,448 (3,883,411 )Stock-based 1,176,595 168,097 2,765,022 876,585 compensationRestructuringand severance 168,074 153,182 599,219 324,164 costsTransactionand - 224,370 82,736 447,908 acquisitioncostsOthernon-recurring 13,109 100,772 53,969 724,137 costsGain on - - (4,911,760 ) - divestitureAdjusted $ (182,644 ) $ (1,317,162 ) $ (1,100,366 ) $ (1,510,617 )EBITDA

Management Commentary

Chris Ferguson, Chief Executive, commented, With the addition of the Vinco team and Honey Badgers digital traffic, Vinco is well positioned to execute our Buy Innovate Grow strategy utilizing a solid engine to drive results. Mr. Ferguson continued, The growth in revenue and gross profit on a year over year basis and the continued reduction of cash-based operating expenses illustrates the positive effect of our collective efforts as a company and provides a strong foundation for 2021 and beyond.

Third Quarter 2020 Earnings Conference Call

The Company is pleased to announce that it will hold its Third Quarter 2020 Earnings Conference Call on Friday, November 27, 2020 at 9:00 am Eastern Time, which will be presented by Mr. Christopher Ferguson - Chief Executive Officer, and Mr. Brett Vroman Chief Financial Officer.

The Company encourages shareholders to submit questions to the Company atinvestors@vincoventures.comby 9:00 pm Eastern Time on Tuesday, November 24, 2020. The Companys management will gladly answer as many questions as possible within the time allotted.

The conference call can be accessed through the following numbers:

1-877-407-0782 (U.S. participants) 1-201-689-8567 (International participants)

To access the live webcast presentation, visit: https://www.webcaster4.com/Webcast/Page/2479/39007 A webcast replay will be available until November 25, 2021.

Conference Replay:

A teleconference replay will be available until December 11, 2020. 1-877-481-4010 (U.S. participants) 1-919-882-2331 (International participants) Passcode: 39007

About Vinco Ventures, Inc.

Vinco Ventures, Inc. (BBIG) is a mergers and acquisition company focused on digital commerce and consumer brands. Vincos B.I.G. (Buy. Innovate. Grow.) strategy will seek out acquisition opportunities that are poised for scale and grow said acquisitions through targeted traffic and content campaigns. For more information, please view ourinvestor presentationor visitInvestors.vincoventures.com.

Use of Non-GAAP Financial Information

EBITDA and Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Management believes that because Adjusted EBITDA excludes (i) certain non-cash expenses (such as depreciation, amortization and stock-based compensation) and (ii) expenses that are not reflective of the Companys core operating results over time (such as restructuring costs, litigation or dispute settlement charges or gains, and transaction-related costs), this measure provides investors with additional useful information to measure the Companys financial performance, particularly with respect to changes in performance from period to period. Edison Nation management uses EBITDA and Adjusted EBITDA (a) as a measure of operating performance; (b) for planning and forecasting in future periods; and (c) in communications with the Companys Board of Directors concerning Edison Nations financial performance. The Companys presentation of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation and should not be used by investors as a substitute or alternative to net income or any measure of financial performance calculated and presented in accordance with U.S. GAAP. Instead, management believes EBITDA and Adjusted EBITDA should be used to supplement the Company's financial measures derived in accordance with U.S. GAAP to provide a more complete understanding of the trends affecting the business.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the Companys views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this release and involve a number of risks and uncertainties, some beyond the Companys control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including consumer, regulatory and other factors affecting demand for the Companys products, any difficulty in marketing the Companys products in global markets, competition in the market for consumer products and inability to raise capital to fund operations and service the Companys debt. Additional information that could lead to material changes in the Companys performance is contained in its filings with the SEC. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

Vinco Ventures, Inc. and Subsidiaries(f/k/a Edison Nation, Inc.)CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, December 31, 2020 2019 (Unaudited) Assets Current assets: Cash and cash equivalents $ 384,604 $ 412,719 Accounts receivable, net 3,145,530 2,108,099 Inventory 1,515,351 1,369,225 Prepaid expenses and other current assets 1,529,709 917,433 Income tax receivable 147,889 147,889 Total current assets 6,723,083 4,955,365 Property and equipment, net 1,012,375 931,968 Right of use assets ? operating leases, 505,933 732,100 netIntangible assets, net 10,772,241 11,598,063 Goodwill 5,392,123 5,392,123 Total assets $ 24,405,755 $ 23,609,619 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 3,024,689 $ 7,397,650 Accrued expenses and other current 1,620,230 1,594,669 liabilitiesDeferred revenues 1,009,838 159,591 Current portion of operating lease 279,719 272,215 liabilitiesIncome tax payable 8,151 22,919 Line of credit, net of debt issuance 1,616,668 456,995 costs of $0 and $15,573, respectivelyCurrent portion of convertible notespayable, net of debt issuance costs of 498,002 - $61,997 and $0, respectivelyCurrent portion of notes payable, net ofdebt issuance costs of $148,278 and 821,092 1,365,675 $212,848, respectivelyCurrent portion of notes payable ? 1,214,698 1,686,352 related partiesDue to related party 22,005 17,253 Total current liabilities 10,115,092 12,973,319 Operating lease liabilities, net of 255,100 482,212 current portionConvertible notes payable ? relatedparties, net of debt discount of $291,667 1,136,495 1,061,495 and $366,666 related to the conversionfeature, respectivelyNotes payable, net of current portion 821,271 42,492 Notes payable ? related parties, net of 1,452,815 1,595,669 current portionTotal liabilities 13,780,773 16,155,187 Commitments and contingencies (Note 8) Stockholders? equity Preferred stock, $0.001 par value,30,000,000 shares authorized; 0 sharesissued and outstanding as of September $ - $ - 30, 2020 and December 31, 2019,respectivelyCommon stock, $0.001 par value,250,000,000 shares authorized; 11,893,291and 8,015,756 shares issued and 11,893 8,016 outstanding as of September 30, 2020 andDecember 31, 2019, respectivelyAdditional paid-in-capital 33,427,702 26,259,575 Accumulated deficit (21,684,394 ) (18,495,461 )Total stockholders? equity attributable 11,727,806 7,772,130 to Edison Nation, Inc.Noncontrolling interests (1,130,219 ) (317,698 )Total stockholders? equity 10,624,982 7,454,432 Total liabilities and stockholders? $ 24,405,755 $ 23,609,619 equity

Vinco Ventures, Inc. and Subsidiaries(f/k/a Edison Nation, Inc.)CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)

For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Revenues, net $ 4,251,147 $ 3,532,645 $ 14,798,283 $ 15,239,434 Cost of 2,668,864 2,544,058 9,977,060 10,413,868 revenuesGross profit 1,582,283 988,587 4,821,223 4,825,566 Operating expenses:Selling,general and 3,474,844 3,296,323 10,438,487 9,738,107 administrativeOperating loss (1,892,561 ) (2,307,736 ) (5,617,264 ) (4,912,541 ) Other(expense) income:Rental income 25,704 25,704 77,111 77,111 Other income - - 4,911,760 - Interest (1,004,626 ) (349,172 ) (2,575,737 ) (875,036 )expenseTotal other(expense) (978,922 ) (323,468 ) 2,413,134 (797,925 )incomeLoss before (2,871,483 ) (2,631,204 ) (3,204,130 ) (5,710,466 )income taxesIncome tax - - - 74,200 expenseNet loss (2,871,483 ) (2,631,204 ) (3,204,130 ) (5,784,666 )Net income(loss)attributable (37,439 ) (49,103 ) (15,198 ) (31,858 )tononcontrollinginterestsNet lossattributable $ (2,834,044 ) $ (2,582,101 ) $ (3,188,932 ) $ (5,752,808 )to VincoVentures, Inc.Net loss per share- basic and $ (0.30 ) $ (0.44 ) $ (0.29 ) $ (1.00 )dilutedWeightedaverage numberof commonshares 9,324,023 5,834,167 10,853,242 5,733,379 outstanding ?basic anddiluted

Vinco Ventures, Inc. and Subsidiaries(f/k/a Edison Nation, Inc.)CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

Nine Months Ended September 30, 2020 2019 Cash Flow from Operating Activities Net loss attributable to Vinco Ventures, Inc. $ (3,188,932 ) $ (5,752,808 )Net loss attributable to noncontrolling (15,198 ) (31,858 )interestsNet loss (3,204,130 ) (5,784,666 )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 938,844 952,019 Amortization of financing costs 2,015,422 658,126 Stock-based compensation 2,765,022 876,585 Amortization of right of use asset 226,167 217,189 Gain on divestiture (4,911,760 ) - Changes in assets and liabilities: Accounts receivable (1,037,432 ) (12,355 )Inventory (146,126 ) (182,370 )Prepaid expenses and other current assets (612,276 ) (667,836 )Accounts payable (367,355 ) 1,413,425 Accrued expenses and other current 1,237,169 549,072 liabilitiesOperating lease liabilities (219,608 ) - Repayment of operating lease liabilities - (199,589 )Due from related party 4,753 (117,786 )Net cash used in operating activities (3,311,310 ) (2,298,186 ) Cash Flows from Investing Activities Purchases of property and equipment (193,429 ) (113,612 )Net cash used in investing activities (193,429 ) (113,612 ) Cash Flows from Financing Activities Borrowings under lines of credit 1,144,100 249,370 Borrowings under convertible notes payable 1,660,000 1,111,111 Borrowings under notes payable 1,739,852 1,670,000 Repayments under lines of credit - (340,766 )Repayments under notes payable (947,127 ) (570,587 )Repayments under notes payable ? related (14,508 ) (82,612 )partiesFees paid for financing costs (33,762 ) (463,146 )Distributions (71,931 ) - Net cash provided by financing activities 3,476,624 1,573,370 Net increase (decrease) in cash and cash (28,115 ) (838,428 )equivalentsCash and cash equivalents - beginning of 412,719 2,052,731 periodCash and cash equivalents - end of period $ 384,604 1,214,303 Supplemental Disclosures of Cash Flow InformationCash paid during the period for: Interest $ 239,682 $ 145,324 Income taxes $ 235,275 $ - Noncash investing and financing activity: Shares issued to note holders $ 2,292,864 $ 309,780 Shares issued for the divestiture of Cloud B, 405,000 - Inc.Conversions under notes payable 1,524,000 - Issuance of warrants to note holders 1,018,953 - Distribution for issuance of shares tononcontrolling interest members of Global 699,000 - Clean Solutions, LLC

Investor Relations: Aimee Carroll Phone: (866) 536-0943 Email: Investors@vincoventures.com