GlobeNewswire Inc | Apr 9, 2021 08:36AM EDT

April 09, 2021

Bethlehem, P.A., April 09, 2021 (GLOBE NEWSWIRE) -- Vinco Ventures (f/k/a Edison Nation, Inc.) (NASDAQ:BBIG), a digital media merger and acquisitions company, today announced results for the year ended December 31, 2020, operated until November 12, 2020 as Edison Nation, a multifaceted ecosystem that fosters innovation and drives IP, media and consumer products

Company Highlights

? Revenue increased 26.01% for the twelve months ended December 31, 2020 versus the twelve months ended December 31, 2019. ? Company enters into Agreement to Complete a Plan of Merger with ZASH Global Media and Entertainment Corporation ? Company completes sale of Subsidiary, SRM Entertainment Ltd Company commences trading under new ticker ?BBIG? and launches the ?Be Big? ? corporate strategy: Buy, Innovate and Grow focused on digital media mergers and acquistions. Company closes on a Purchase and Sale Agreement to acquire all outstanding ? membership units of TBD Safety, LLC; whose assets included 911 Help Now product and patents. Company purchases Honey Badger Media, LLC (a Nevada entity), a full-service ? content monetization company, which was launched through transactions with Honey Badger Media, LLC. Company introduces new Chief Strategy Officer Brian McFadden, who will ? concentrate on the new ?Be Big? strategy and will lead the charge on targeting acquisitions that ensure long term growth.

Twelve Months End December 31, 2020 Financial Summary

Revenue

Revenue for the twelve months ended December 31, 2020 increased to $15.8 ? million as compared to $12.5 million for the twelve months ended December 31, 2019, a 26.01% increase. Gross Profit for the twelve months ended December 31, 2020 decreased to ? $4.37 million as compared to $4.99 million for the twelve months ended December 31, 2019, a 12.28% decrease. Gross Margin for the twelve months ended December 31, 2020 decreased to ? 27.74% as compared to 39.85% for the twelve months ended December 31, 2019, a 12.11% decrease.

Net Loss

Net loss for the twelve months ended December 31, 2020 was $5.07 million, ? or ($0.37) per basic and diluted share, compared to a net loss of $14.19 million, or ($2.36) per basic and diluted share for the twelve months ended December 31, 2019.

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP measure, totaled a negative $0.292 million for ? the twelve months ended December 31, 2020, compared to a negative $11.599 million for the twelve months ended December 31, 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).

For the years ended December 31, 2020 and 2019, EBITDA and Adjusted EBITDA consisted of the following:

For the Years Ended December 31, 2020 2019 Net (loss) income from continuing $ (5,065,186 ) $ (14,198,980 )operationsNet (loss) income from discontinued (642,632 ) operationsInterest expense, net 3,378,131 1,298,168 Income tax expense (benefit) 30,137 (19,547 )Depreciation and amortization 1,381,366 1,321,186 EBITDA (918,184 ) (11,599,173 )Stock-based compensation 3,241,764 2,299,915 Impairment - 4,443,000 Restructuring and severance costs 765,867 446,114 Transaction and acquisition costs 258,639 447,908 Other non-recurring costs 107,469 1,520,777 Gain on divestiture (6,153,674 ) - Adjusted EBITDA $ (2,698,119 ) $ (2,441,459 )

Management Commentary

Increasing revenues during 2020s pandemic crisis demonstrates the ability of the Company to adapt and scale quickly in a new environment. Leveraging that knowledge and momentum, we are continuing forward into 2021 excited for our pending merger with ZASH Global Media and Entertainment. With some great opportunities on the horizon, we remain focused on the digital media mergers and acquisitions market and will continue to BE BIG said CEO Christopher Ferguson.

Twelve Months 2020 Earnings Conference Call

The Company is pleased to announce that it will hold its December 31, 2020 Year End Earnings Conference Call on Monday, April 12, 2021 at 4:30 pm Eastern Time, which will be presented by Mr. Christopher Ferguson - Chief Executive Officer, and Mr. Brett Vroman Chief Financial Officer.

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/2479/40618A webcast replay will be available until April 12, 2022.

About Vinco Ventures, Inc.

Vinco Ventures, Inc. (BBIG) is a consumer products and digital marketing company which aims to advance both product and people brand recognition through its digital marketing and technology platform while reshaping how those are monetized and marketed. Vincos B.I.G. (Buy. Innovate. Grow.) strategy seeks out acquisition opportunities that allow for the generation of digital traffic geared towards growth and profitability. For more information, please view our investor presentation or visit Investors.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 the Companys 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 Companys 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 CONSOLIDATED BALANCE SHEETS(Unaudited)

December 31, December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 249,356 $ 234,234 Accounts receivable, net 1,603,127 1,304,783 Inventory 1,687,462 1,242,486 Prepaid expenses and other current assets 784,238 885,766 Income tax receivable - - Short-term investments 1,018,000 - Current assets of discontinued operation - 1,288,096 Total current assets 5,342,183 4,955,365 Property and equipment, net 1,010,801 875,919 Right of use assets, net 153,034 732,100 Intangible assets, net 15,538,337 11,598,063 Goodwill 5,983,852 5,392,123 Non-current assets of discontinued - 56,049 operationTotal assets $ 28,028,207 $ 23,609,619 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 4,105,794 $ 6,015,595 Accrued expenses and other current 2,101,610 1,485,062 liabilitiesDeferred revenues 152,040 159,591 Current portion of operating leases 96,777 272,215 liabilitiesIncome tax payable 27,643 22,919 Line of credit, net of debt issuance costs 1,500,953 456,995 of $15,573 and $15,573, respectivelyCurrent portion of convertible notes 577,260 - payableCurrent portion of notes payable, net ofdebt issuance costs of $212,848 and 1,301,212 1,365,675 $212,848, respectivelyCurrent portion of notes payable ? related 1,389.923 1,686,352 partiesDue to related party 32,452 17,253 Current liabilities of discontinued - 1,491,662 operationTotal current liabilities 11,285,663 12,973,319 Operating leases liabilities ?net of 58,713 482,212 current portionConvertible notes payable ? relatedparties, net of current portion, net of 1,161,495 1,061,495 debt discount of $366,666 and $366,666,respectivelyNotes payable, net of current portion 595,879 42,492 Notes payable ? related parties, net of 1,403,756 1,595,669 current portionNon-current liabilities of discontinued - - operationTotal liabilities $ 14,505,506 $ 16,155,187 Commitments and Contingencies (Note 15) Stockholders? equity Preferred stock, $0.001 par value,30,000,000 shares authorized as of December $ - $ - 31, 2020 and December 31, 2019,respectivelySeries B Preferred Stock, $0.001 par value,1,000,000 shares authorized; 764,618 and 0 765 - shares issued and outstanding as ofDecember 31, 2020 and 2019, respectivelyCommon stock, $0.001 par value, 250,000,000shares authorized 14,471,403 and 8,015,756 14,471 8,016 shares issued and outstanding as ofDecember 31, 2020 and 2019, respectivelyAdditional paid-in-capital 39,050,260 26,259,575 Accumulated deficit (23,648,898 ) (18,495,461 )Total stockholders? equity attributable to 15,416,598 7,772,130 Vinco Ventures, Inc.Noncontrolling interests (1,893,897 ) (317,698 )Total stockholders? equity 13,522,701 7,454,432 Total liabilities and stockholders? equity $ 28,028,207 $ 23,609,619

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

Years Ended December 31, 2020 2019 Revenues, net $ 15,781,319 $ 12,523,432 Cost of revenues 11,403,474 7,523,669 Gross profit 4,377,845 4,990,763 Operating expenses: Selling, general and administrative 12,280,192 14,085,195 Gain on change in fair value of earnout - (520,000 )liabilityImpairment of goodwill - 4,443,000 Total operating expenses 12,280,192 18,008,195 Operating loss (7,902,347 ) (13,017,432 ) Other (expense) income: Rental income 102,815 102,815 Interest expense (3,378,131 ) (1,299,153 )Change in fair value of short-term (22,000 ) - investmentsGain on divestiture 6,153,674 - Other income - 3.054 Total other income (expense) 2,856,358 (1,193,284 )Loss before income taxes (5,045,989 ) (14,210,716 )Income tax (benefit) expense (19,197 ) (22,373 )Net loss (5,065,186 ) (14,188,343 )Net (loss) income attributable to (554,382 ) (1,269,274 )noncontrolling interestsNet loss attributable to Vinco Ventures, (4,510,804 ) (12,919,069 )Inc.Net loss from discontinued operations (629,692 ) (7,811 )Provision for income taxes for discontinued 12,940 2,826 operationsNet loss attributable to Vinco Ventures, $ (5,153,436 ) $ (12,929,706 )Inc.Net loss per share - basic and diluted $ (0.37 ) $ (2.36 )Weighted average number of common shares 14,058,101 6,026,049 outstanding ? basic and diluted

Vinco Ventures, Inc. and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Years Ended December 31, 2020 2019 Cash Flows from Continuing Operations Cash Flow from Operating Activities Net loss attributable to Vinco Ventures, $ (4,510,804 ) $ (12919,069 )Inc.Net loss attributable to noncontrolling (554,382 ) (1,269,274 )interestsNet loss (5,065,186 ) (14,188,343 )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 1,353,822 1,284,251 Amortization of debt issuance costs 2,357,879 944,437 Stock-based compensation 3,241,554 2,299,915 Change in fair value of earnout - (520,000 )Change in fair value of short-term 22,000 - investmentImpairment of goodwill - 4,443,000 )Deferred tax liability - (341 )Amortization of right of use asset 579,066 295,106 Gain on divestiture of Cloud B (4,911,761 ) - Gain on divestiture of SRM (1,241,914 ) - Changes in assets and liabilities: Accounts receivable (2,019,009 ) (73,437 )Inventory 47,817 (397,673 )Prepaid expenses and other current assets 868,168 (720,240 )Accounts payable 2,055,055 1,356,873 Accrued expenses and other current 155,815 511,842 liabilitiesOperating lease liabilities (598,937 ) (272,779 )Due to/from related party 1,167,846 395,300 Net cash provided by (used in) operating (1,987,785 ) (4,641,748 )activities from continuing operations Cash Flows from Investing Activities Purchases of property and equipment (276,478 ) (151,502 )Acquisitions, net of cash 180,489 - Purchase of licensing agreement (1,552,500 ) - Net cash used in investing activities from (1,648,489 ) (151,502 )continuing operations Cash Flows from Financing Activities Net borrowings under line of credit 1,028,385 - Borrowings under convertible notes payable 2,067,123 1,111,111 Borrowings under notes payable 1,944,479 2,482,500 Borrowings under notes payable ? related 250,000 - partiesRepayments under line of credit - (90,382 )Repayments under notes payable (1,042,946 ) (1,231,744 )Repayments under notes payable ? related (119,509 ) (182,170 )partiesFees paid for financing costs (157,055 ) (581,496 )Net proceeds from issuance of common stock ? - 2,048,562 net of offering costs of $310,697Net proceeds from issuance of common stock ? 250,000 - warrantsDistributions (296,425 ) - Net cash provided by financing activities 3,924,052 3,556,381 from continuing operations Cash Flow from Discontinued Operations Net cash used in operating activities from (178,485 ) (394,707 )discontinued operationsNet cash used in investing activities from - (8,436 )discontinued operationsNet cash used in financing activities from - - discontinued operationsNet cash used from discontinued operations (178,485 ) (403,143 ) Net increase (decrease) in cash and cash 15,122 (1,236,869 )equivalents from continuing operationsNet increase (decrease) in cash and cash (178,485 ) (403,143 )equivalents from discontinued operationsCash and cash equivalents - beginning of 234,234 2,052,731 yearCash and cash equivalents - end of year $ 249,356 $ 412,719 Supplemental Disclosures of Cash Flow InformationCash paid during the period for: Interest $ 218,038 $ 260,444 Income taxes $ (14,738 ) $ 235,275 Shares issued to note holders $ 1,409,396 $ - Shares issued for the asset acquisition of $ - $ 98,613 Uber MomShares issued for the divestiture of Cloud $ 405,000 $ - B, Inc.Conversions under notes payable $ 1,524,000 $ - Issuance of warrants to note holders $ 852,277 $ - Change in fair value of earnout $ 200,000 $ (520,000 )Distribution for issuance of shares tononcontrolling interest members of Global $ 699,000 $ - Clean Solutions, LLCRight of use assets $ - $ 943,997 Operating lease liabilities $ - $ 943,997

The financial information contained in this press release is preliminary and is based on the latest estimated unaudited management accounts for the year ended December 31, 2020. Such information is not a comprehensive statement of Vinco Ventures results for, and as of, the year ended December 31,2020, and is subject to the completion of managements and audit committees reviews and other financial closing processes and potential adjustments. Accordingly, Vinco Ventures actual results as of, and for, the year ended December 31, 2020 may differ materially from the preliminary estimated data presented in this press release

The information contained in this press release has not been, and is not based on information that has been, audited, or reviewed by Vinco Ventures independent auditor. Investors are cautioned not to place undue reliance on these preliminary estimates.

This preliminary estimated data should not be considered a substitute for the audited financial results for the year ended December 31, 2020, to be filed with the Securities and Exchange Commission (the SEC) on Form 10-K, which Vinco Ventures expects to occur on or before April 12, 2021.

Investor Relations:

Aimee CarrollPhone (866) 900-0992Email:Investors@vincoventures.com