GlobeNewswire Inc | May 25, 2021 09:20AM EDT

May 25, 2021

Bethlehem, P.A., May 25, 2021 (GLOBE NEWSWIRE) -- Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media merger and acquisitions company, today announced results for the three months ended March 31, 2021.

Company Highlights

? Revenue increased 31.32% for the three months ended March 31, 2021 versus the three months ended March 31, 2020. ? Company enters into Agreement to Complete a Plan of Merger with ZASH Global Media and Entertainment Corporation ? Company enters into joint venture with ZASH Global Media and Entertainment Corporation forming ZVV Media Partners, LLC

Three Months End March 31, 2021 Financial Summary

Revenue

Revenue for the three months ended March 31, 2021 increased to $2.57 ? million as compared to $1.95 million for the three months ended March 31, 2020, a 31.32% increase. Gross Profit for the three months ended March 31, 2021 increased to $0.9 ? million as compared to $0.6 million for the three months ended March 31, 2020, a 56.64% decrease. Gross Margin for the three months ended March 31, 2021 increased to 35.54% ? as compared to 30.19% for the three months ended March 31, 2020, a 17.72% increase.

Net Loss

Net loss for the three months ended March 31, 2021 was $62.47 million, or ? ($3.27) per basic and ($3.28) per diluted share, compared to a net gain of $1.27 million, or $0.166 per basic and $0.13 per diluted share for the three months ended March 31, 2020.

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP measure, totaled a negative $1.29 million for ? the three months ended March 31, 2021, compared to a negative $0.92 million for the three months ended March 31, 2020. Adjusted EBITDA includes the addback for the loss on issuance of warrant ? liability of $75.2 million offset by a gain on change in fair value of warrant liability of $36.4 million.

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 three months ended March 31, 2021 and 2020, EBITDA and Adjusted EBITDA consisted of the following:

For the Three Months Ended March 31, 2021 2020 Net income (loss) from continuing $ (62,263,320 ) $ 1,269,492 operationsNet income (loss) from discontinued (178,200 ) - operationsInterest expense, net 12,694,933 723,957 Depreciation and amortization 445,541 316,298 EBITDA (49,301,046 ) 2,309,747 Stock-based compensation 8,697,502 1,319,511 Loss on issuance of warrant liability 75,156,534 Change in fair value of warrant (36,381,542 ) - liabilityRestructuring and severance costs - 242,136 Transaction and acquisition costs 704,565 82,736 Other non-recurring costs - 40,860 Gain on divestiture - (4,911,760 ) - - Adjusted EBITDA $ (1,123,987 ) $ (916,770 )

Vinco Ventures, Inc. and SubsidiariesCONSOLIDATED BALANCE SHEETS

March 31, December 31, 2021 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 5,525,744 $ 249,356 Accounts receivable, net 1,683,294 1,382,163 Short-term investments 948,000 1,018,000 Inventory 1,123,261 1,127,725 Prepaid expenses and other current assets 603,966 522,259 Current assets of discontinued operations 1,354,546 1,042,680 Total current assets 11,238,811 5,342,183 Property and equipment, net 996,217 1,010,801 Right of use assets, net 128,871 153,034 Loan receivable 5,000,000 - Equity method investment 7,000,000 - Intangible assets, net 9,485,370 9,798,813 Goodwill 5,983,852 5,983,852 Non-current assets of discontinued 5,640,238 5,739,524 operationsTotal assets $ 45,473,359 $ 28,028,207 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 1,339,009 $ 3,618,339 Accrued expenses and other current 1,344,750 2,101,610 liabilitiesDeferred revenues 131,578 152,040 Current portion of operating leases 73,054 96,777 liabilitiesIncome tax payable 27,643 27,643 Line of credit, net of debt issuance costs 1,133,652 1,500,953 of $0 and $15,573, respectivelyCurrent portion of convertible notespayable, net of debt issuance costs of 1,172,222 577,260 $9,827,778 and $0, respectivelyCurrent portion of notes payable, net ofdebt issuance costs of $0 and $212,848, 441,192 1,301,212 respectivelyCurrent portion of notes payable ? related 876,500 1,389.923 partiesDue to related party 15,450 32,452 Current liabilities of discontinued 589,363 487,454 operationsTotal current liabilities 7,144,413 11,285,663 Operating leases liabilities ?net of 58,713 58,713 current portionConvertible notes payable ? relatedparties, net of current portion, net of 249,288 1,161,495 debt discount of $172,984 and $366,666,respectivelyNotes payable, net of current portion 450,002 595,879 Notes payable ? related parties, net of 1,291,013 1,403,756 current portionWarrant liability 58,235,565 - Total liabilities $ 67,428,994 $ 14,505,506 Commitments and Contingencies (Note 12) Stockholders? equity Preferred stock, $0.001 par value,30,000,000 shares authorized as of March - - 31, 2021 and December 31, 2020,respectivelySeries B Preferred Stock, $0.001 par value,1,000,000 shares authorized; 764,618 and764,618 shares issued and outstanding as of $ 765 $ 765 March 31, 2021 and December 31, 2020,respectivelyCommon stock, $0.001 par value, 250,000,000shares authorized 25,685,981 and 14,471,403shares issued and outstanding as of March 25,686 14,471 31, 2021 and December 31, 2020,respectivelyAdditional paid-in-capital 66,002,229 39,050,260 Accumulated deficit (86,118,452 ) (23,648,898 )Total stockholders? (deficit) equity (20,089,772 ) 15,416,598 attributable to Vinco Ventures, Inc. Noncontrolling interests (1,865,863 ) (1,893,897 )Total stockholders? equity (21,955,635 ) 13,522,701 Total liabilities and stockholders? equity $ 45,473,359 $ 28,028,207

Vinco Ventures, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2021 2020 (Unaudited) (Unaudited) Revenues, net $ 2,565,162 $ 1,953,346 Cost of revenues 1,653,381 1,363,719 Gross profit 911,781 589,627 Operating expenses: Selling, general and administrative 11,660,880 3,288,949 Operating loss (10,749,099 ) (2,699,322 ) Other (expense) income: Rental income 25,704 25,704 Interest expense (12,694,933 ) (723,957 )Loss on issuance of warrants (75,156,534 ) - Change in fair value of warrant liability 36,381,542 - Change in fair value of short-term (70,000 ) - investmentTotal other income (expense), net (51,514,221 ) (698,253 )(Loss) income before income taxes (62,263,320 ) (3,397,575 )Income tax expense - - Net loss from continuing operations $ (62,263,320 ) $ (3,397,575 )Net income attributable to noncontrolling 28,034 - interestsNet loss attributable to Vinco Ventures, (62,291,354 ) (3,397,575 )Inc. from continuing operationsLoss from discontinued operations (178,200 ) (244,693 )Gain on divestiture from discontinued - 4,911,760 operationsNet (loss) income attributable to Vinco (62,469,554 ) 1,269,492 Ventures, Inc.Net (loss) income per share - basic $ (3.27 ) $ 0.16 Net (loss) income per share - diluted $ (3.28 ) $ 0.13 Weighted average number of common shares 19,055,006 8,181,470 outstanding ? basicWeighted average number of common shares 19,055,006 9,637,421 outstanding ? diluted

Vinco Ventures, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2021 2020 (Unaudited) (Unaudited)Cash Flow from Operating Activities Net income (loss) attributable to $ (62,291,354 ) $ (3,397,975 )Vinco Ventures, Inc.Net income attributable to 28,034 - noncontrolling interestsNet income (loss) (62,263,320 ) (3,397,975 )Adjustments to reconcile net (income)loss to net cash used in operating activities:Discontinued operations (178,200 ) 4,667,067 Depreciation and amortization 445,541 316,299 Amortization of financing costs 12,418,930 570,636 Stock-based compensation 8,697,502 1,319,511 Amortization of right of use asset 24,163 77,823 Gain on divestiture - (4,911,760 )Change in fair value of short-term 70,000 - investmentsLoss on issuance of warrants 75,156,534 Change in fair value of warrant (36,381,542 ) liabilityChanges in assets and liabilities: Accounts receivable (494,130 ) 64,359 Inventory (215,717 ) 69,089 Prepaid expenses and other current 139,635 33,441 assetsAccounts payable (804,282 ) (215,320 )Accrued expenses and other current (714,500 ) 335,815 liabilitiesOperating lease liabilities (23,723 ) (74,776 )Due from related party (17,001 ) (8,115 )Net cash used in operating activities (4,140,110 ) (1,153,506 ) Cash Flows from Investing Activities Purchases of property and equipment (18,228 ) (31,918 )Equity method investment (7,000,000 ) - Funding of loan receivable (5,000,000 ) - Net cash used in investing activities (12,018,228 ) (31,918 ) Cash Flows from Financing Activities Net (repayments) borrowings under line (379,333 ) 112,862 of creditBorrowings under convertible notes 19,720,000 1,100,000 payableBorrowings under notes payable 73,000 950,000 Repayments under notes payable (2,141,782 ) (672,773 )Repayments under notes payable- (659,999 ) (14,508 )related partiesFees paid for financing costs (122,762 ) (170,815 )Net proceeds from issuance of common 3,255,000 - stockExercise of warrants 1,690,604 - Net cash provided by financing 21,434,726 1,304,766 activitiesNet increase (decrease) in cash and 5,276,388 119,342 cash equivalentsCash and cash equivalents - beginning 249,356 412,719 of periodCash and cash equivalents - end of $ 5,525,744 532,062 period Supplemental Disclosures of Cash Flow InformationCash paid during the period for: Interest $ 343,824 $ 127,504 Income taxes $ (14,738 ) $ - Noncash investing and financing activity:Shares issued to note holders $ 422,672 $ 368,000 Conversions under notes payable $ 11,094,020 $ - Issuance of warrants to note holders $ 22,000,000 $ -

About Vinco Ventures, Inc.

Vinco Ventures, Inc. (BBIG) is a selective acquisitions company focused on digital media and content technologies. Vincos B.I.G. Strategy (Buy. Innovate. Grow.) is to seek out acquisition opportunities that are poised for scale and will BE BIG. For more information 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 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.

Investor Relations:

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