GlobeNewswire Inc | Aug 23, 2021 04:30PM EDT

August 23, 2021

Bethlehem, P.A., Aug. 23, 2021 (GLOBE NEWSWIRE) -- Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media merger and acquisitions company, today announced results for the second quarter ended June 30, 2021.

Companyto Host Second Quarter 2021 Earnings Conference Call on August 25, 2021

Company Highlights

-- Vinco Ventures and ZASH Global Media and Entertainment through their Joint Venture, ZVV Media Partners, LLC completes acquisition of eighty percent (80%) interest in Lomotif. -- Lomotif has achieved a record number of Monthly Active Users (MAUs) with over 30 million MAUs according to Data Analysis Firm Sensor Tower -- The Lomotif India initiative continues to work well with robust user growth on a monthly basis. India will remain a focus target market. -- Vinco Ventures currently has approximately $80 million cash as of todays date. -- The current registered warrants (approximately 44 million) provide the Company with additional capital of more than $140 million when exercised. -- In April of 2021, The Company acquired the assets of Emmersive Entertainment in an all-stock deal. Utilizing the Emmersive assets, the Company developed the EVNT Platform which operates the NFT Commerce site, E-NFT.com. -- The Company recently launched recording Artist Tory Lanez album When Its Dark on the E-NFT.com platform. When Its Dark is the first album to go platinum on the blockchain with over 1,000,000 units sold. -- The Company has announced the spin out of the EVNT Platform into its own Publicly traded company. The date of record has not been set.

Second Quarter 2021 Financial Highlights (Three Months Ended June 30, 2021)

-- For the three months ended June 30, 2021 revenue decreased to $2.69 million as compared to $5.17 million for the three months ended June 30, 2020, a 47.97% decrease. The decrease in revenue is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division. -- For the three months ended June 30, 2021 gross profit decreased by $198,424 as compared to the three months ended June 30, 2020 gross profit, a decrease of 16.97%. The decrease in gross profit is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division. -- For the three months ended June 30, 2021 gross margin increased to 36.06% as compared to the three months ended June 30, 2020 gross margin of 22.59%. The lower margins in the prior period are due to revenues from the lower margin Edison Nation Medical division.

Second Quarter 2021 Financial Summary Revenue (Six Months Ended June 30, 2021)

-- For the six months ended June 30, 2021 revenue decreased to $5.26 million as compared to $7.13 million for the six months ended June 30, 2020, a 26.24% decrease. The decrease in revenue is mainly attributed to the decrease in sales of Personal Protective Equipment in the Edison Nation Medical division. -- For the six months ended June 30, 2021 gross profit increased by $123,730 as compared to the six months ended June 30,2020 gross profit, an increase of 7.04%. -- For the six months ended June 30, 2021 gross margin increased to 35.81% as compared to the six months ended June 30, 2020 gross margin of 24.68%. The lower margins in the prior period are due to revenues from the lower margin Edison Nation Medical division.

Net Loss

-- Net loss in the second quarter of 2021 was $183.89 million, or ($5.13) per basic and diluted share, compared to a net loss of $1.62 million, or ($0.18) per basic and diluted share in the second quarter of 2020. The increase in the net loss is primarily due to the issuance of warrants during the period. -- Net loss for the first six months of 2020 was $246.14 million, or ($8.95) per basic and diluted share, compared to a net loss of $0.35 million, or ($0.04) per basic and diluted share in the first six months of 2021. The increase in the net loss is primarily due to the issuance of warrants during the period.

Vinco Ventures, Inc. Second Quarter 2021 Conference Call

Event Date: Wednesday August 25, 2021

Event Time: 5:00PM Eastern Standard Time

Event Duration: 60 minutes

The conference call can be accessed through the following numbers:

1- 844-602-0380 (U.S. participants)1- 862-298-0970 (International participants)

To access the live webcast presentation, visit: https://www.webcaster4.com/Webcast/Page/2479/42594A webcast replay will be available until August 25, 2022.

Questions can be submitted to investors@vincoventures.com on or before 2pm on August 24, 2021.

Conference Replay:

A teleconference replay will be available until September 8, 2021.1- 877-481-4010 (U.S. participants)1-91 919-882-23319-882-2331 (International participants)Passcode: 42594

Vinco Ventures, Inc. and SubsidiariesCONSOLIDATED BALANCE SHEETS

June 30, December 31, 2021 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 74,756,573 $ 249,356 Accounts receivable, net 2,907,002 1,382,163 Short-term investments 895,600 1,018,000 Inventory 852,147 1,127,725 Prepaid expenses and other current assets 1,209,435 522,259 Current assets of discontinued operations - 1,042,680 Total current assets 80,620,757 5,342,183 Property and equipment, net 1,033,810 1,010,801 Right of use assets, net 104,707 153,034 Loan receivable 5,000,000 - Equity method investment 12,000,000 - Intangible assets, net 16,533,373 9,798,813 Goodwill 5,983,852 5,983,852 Non-current assets of discontinued - 5,739,524 operationsTotal assets $ 121,276,499 $ 28,028,207 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 1,791,982 $ 3,618,339 Accrued expenses and other current 1,284,168 2,101,610 liabilitiesDeferred revenues 131,578 152,040 Current portion of operating leases 99,293 96,777 liabilitiesIncome tax payable 27,643 27,643 Line of credit, net of debt issuance 1,133,652 1,500,953 costs of $0 and $15,573, respectivelyCurrent portion of convertible notespayable, net of debt issuance costs of 3,333,333 577,260 $6,666,667 and $0, respectivelyCurrent portion of notes payable, net ofdebt issuance costs of $0 and $212,848, 15,185 1,301,212 respectivelyCurrent portion of notes payable ? 876,500 1,389,923 related partiesDue to related party 15,401 32,452 Current liabilities of discontinued 120,729 487,454 operationsTotal current liabilities 8,829,464 11,285,663 Operating leases liabilities ?net of 8,483 58,713 current portionConvertible notes payable ? relatedparties, net of current portion, net of 267,183 1,161,495 debt discount of $172,984 and $366,666,respectivelyNotes payable, net of current portion 19,966 595,879 Notes payable ? related parties, net of - 1,403,756 current portionWarrant liability 139,695,115 - Total liabilities $ 148,820,211 $ 14,505,506 Commitments and Contingencies (Note 12) - Stockholders? equity Preferred stock, $0.001 par value,30,000,000 shares authorized as of June $ - $ - 30, 2021 and December 31, 2020,respectivelySeries B Preferred Stock, $0.001 parvalue, 1,000,000 shares authorized; 0 and764,618 shares issued and outstanding as - 765 of June 30, 2021 and December 31, 2020,respectively Common stock, $0.001 par value,250,000,000 shares authorized 59,927,241and 14,471,403 shares issued and 59,927 14,471 outstanding as of June 30, 2021 andDecember 31, 2020, respectivelyAdditional paid-in-capital 244,026,879 39,050,260 Accumulated deficit (269,787,198 ) (23,648,898 )Total stockholders? (deficit) equity (25,700,392 ) 15,416,598 attributable to Vinco Ventures, Inc.Noncontrolling interests (1,843,320 ) (1,893,897 )Total stockholders? equity (27,543,712 ) 13,522,701 Total liabilities and stockholders? $ 121,276,499 $ 28,028,207 equity

The accompanying notes are an integral part of these condensed consolidated financial statements.

Vinco Ventures, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months For the Six Months Ended June 30, Ended June 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues, net $ 2,691,811 $ 5,173,982 $ 5,256,973 $ 7,127,328 Cost of 1,721,189 4,004,936 3,374,570 5,368,655 revenuesGross profit 970,622 1,169,046 1,882,403 1,758,673 Operating expenses:Selling,general and 5,941,652 2,377,853 17,602,532 5,567,516 administrativeOperating loss (4,971,032 ) (1,208,807 ) (15,720,129 ) (3,808,843 ) Other(expense) income:Rental income 28,703 25,703 54,407 51,407 Interest (2,715,481 ) (847,154 ) (15,410,414 ) (1,571,111 )expenseLoss on )issuance of (133,699,181 - (208,855,715 ) - warrantsChange in fairvalue of (37,154,989 ) - (773,447 ) - warrant liabilityChange in fairvalue of (52,000 ) - (122,000 ) - short-terminvestmentLoss ondisposal of (301,645 ) - (301,645 ) - interest injoint ventureGain on - - - - divestitureTotal other(expense) (173,894,593 ) (821,451 ) (225,408,814 ) (1,519,704 )incomeLoss before (178,865,623 ) (2,030,258 ) (241,128,943 ) (5,328,547 )income taxesIncome tax - - - - expenseNet loss fromcontinuing $ (178,865,623 ) $ (2,030,258 ) $ (241,128,943 ) $ (5,328,547 )operationsNet income(loss)attributable 22,543 22,241 50,577 22,241 tononcontrollinginterestsNet loss fromcontinuingoperations (178,888,166 ) (2,052,499 ) (241,179,520 ) (5,350,788 )attributableto VincoVentures, Inc.Net loss from )discontinued (4,780,580 428,119 (4,958,780 ) 4,995,900 operationsProvision forincome taxesfor - - - - discontinuedoperationsNet lossattributable $ (183,668,746 ) $ ) $ (246,138,300 ) $ (354,888 )to Vinco (1,624,380 Ventures, Inc.Net loss per share:Net (loss)income per $ (5.13 ) $ (0.18 ) $ (8.95 ) $ (0.04 )share - basicNet (loss)income per $ (5.13 ) $ (0.18 ) $ (8.95 ) $ (0.04 )share - dilutedWeightedaverage numberof commonshares 35,831,466 8,920,554 27,489,580 8,551,012 outstanding ?basic anddiluted

The accompanying notes are an integral part of these condensed consolidated financial statements.

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

Six Months Ended June 30, 2021 2020 (Unaudited) (Unaudited)Cash Flow from Operating Activities Net loss from continuing operations $ (241,179,520 ) $ (5,350,788 )attributable to Vinco Ventures, Inc.Net income attributable to 50,577 22,241 noncontrolling interestsNet loss from continuing operations (241,128,943 ) (5,328,547 )Adjustments to reconcile net (income)loss to net cash used in operating activities:Discontinued operations (4,958,780 ) 4,995,900 Depreciation and amortization 1,081,623 612,406 Amortization of financing costs 15,597,936 1,227,046 Stock-based compensation 10,003,767 1,588,427 Amortization of right of use asset 48,327 153,820 Gain on debt extinguishment (852,352 ) - Loss on disposal of discontinued 4,130,580 (4,911,760 )operations Change in fair value of short-term 122,400 - investmentsLoss on issuance of warrants 208,855,715 - Change in fair value of warrant 773,447 - liabilityChanges in assets and liabilities: Accounts receivable (1,596,881 ) (978,097 )Inventory 169,793 178,227 Prepaid expenses and other current (378,831 ) (967,109 )assetsAccounts payable (819,943 ) (344,847 )Accrued expenses and other current (775,082 ) 1,425,622 liabilitiesOperating lease liabilities (47,714 ) (148,518 )Due from related party (17,050 ) 9,532 Net cash used in operating activities (9,791,988 ) (2,487,898 ) Cash Flows from Investing Activities Purchase of property and equipment (88,633 ) (61,917 )Cash received from sale of assets of 2,529,564 - CBAV 1, LLCEquity method investment (12,000,000 ) - Funding of loan receivable (5,000,000 ) - Net cash used in investing activities (14,559,069 ) (61,917 ) Cash Flows from Financing Activities (Repayments) borrowings under line of (379,333 ) 1,678,540 creditBorrowings under convertible notes 19,720,000 1,436,000 payableBorrowings under notes payable 73,000 1,767,352 Repayments under notes payable (2,145,475 ) (824,472 )Repayments under notes payable- (1,951,012 ) (14,508 )related partiesFees paid for financing costs (120,261 ) (143,479 )Net proceeds from issuance of common 3,255,000 - stockNet proceeds from exercise of 80,406,355 - warrantsNet cash provided by financing 98,858,274 3,899,433 activitiesNet increase (decrease) in cash and 74,507,217 1,349,618 cash equivalentsCash and cash equivalents - beginning 249,356 412,719 of periodCash and cash equivalents - end of $ 74,756,573 1,762,337 period Supplemental Disclosures of Cash Flow InformationCash paid during the period for: Interest $ 858,388 $ 144,740 Income taxes $ (14,738 ) $ 235,725 Noncash investing and financing activity:Shares issued to note holders $ 422,672 $ - Conversions under notes payable $ 12,248,507 $ 424,000 Issuance of warrants to note holders $ 208,855,715 $ - Shares reserved for EVNT, LLC $ 7,400,000 $ -

The accompanying notes are an integral part of these condensed consolidated financial statements.

About Lomotif

Lomotif is the leading video-sharing social networking platform that is democratizing video creation. Since the company was co-founded by video enthusiast Paul Yang in 2014, Lomotif has been granted three technology patents uniquely focused on empowering creators to share and watch short videos with ease through remix and collaboration. Yangs bold vision is to build the worlds largest video vocabulary to accelerate the worlds transition to video-first expression. Lomotif, available in the Apple and Google stores, is a downloadable app for hip hop, rap, and urban culture across the United States and Latin America. Lomotif is one of five partners selected by Snapchat for a bi-directional integration for posting stories between the two platforms. For additional information about Lomotif Private Limited, please visit Lomotifs website at www.lomotif.com.

About ZASH Global Media and Entertainment Corporation

ZASH Global Media and Entertainment Corporation is an evolving network of synergetic companies working together to disrupt the media and entertainment industry. For additional information about ZASH Global Media and Entertainment Corporation, please visit ZASHs website at www.zash.global.

About Vinco Ventures, Inc.

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

Forward-Looking Statements and Disclaimers

To the extent any statements contained in this press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 and the information that are based upon beliefs of, and information currently available to, the companys management as well as estimates and assumptions made by the companys management. These statements can be identified by the fact that they do not relate strictly to historic or current facts. When used in this presentation the words estimate, expect, intend, believe, plan, anticipate, projected and other words or the negative of these terms and similar expressions as they relate to the company or the companys management identify forward-looking statements. Such statements reflect the current view of the company with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to the companys industry, its operations and results of operations and any businesses that may be acquired by the company. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the company does not intend to update any of the forward-looking statements to conform these statements to actual results.

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Investor RelationsAimee CarrollT: 866-900-0992investors@vincoventures.com