GlobeNewswire Inc | Nov 22, 2021 09:10PM EST

November 23, 2021

Fairport, NY, Nov. 22, 2021 (GLOBE NEWSWIRE) -- Vinco Ventures, Inc. (NASDAQ:BBIG), a digital media and content technologies holding company (Vinco Ventures, or the Company), today announced results for the third quarter ended September 30, 2021.

We are very pleased with our operational developments in the quarter, which included key building blocks of our strategy to create a global media and content platform, said Lisa King, Chief Executive Officer of Vinco Ventures. Importantly, through our joint venture, ZVV Media, we completed the acquisition of an 80% interest in Lomotif, a global, pure play video-sharing social networking platform and we are making good progress on extending the brand to additional geographies, including the U.S. and India. We also announced the planned spin-off of our blockchain business, Cryptyde, continued Ms. King.

Operational Highlights:

-- Vinco Ventures and ZASH Global Media and Entertainment Corporation through their joint venture, ZVV Media Partners, LLC (ZVV), completed the acquisition of an 80% interest in Lomotif Private Limited (Lomotif). -- Lomotif officially launched in India this past weekend following the beta test in the third quarter. Lomotif worked in India with Social Kyte, a popular influencer platform with over 90,000 member influencers. The Lomotif expansion into India, a large target market, continues to progress with user growth. -- Lomotif worked with EDC Las Vegas to extend the Lomotif brand in the U.S. through a three-day event in October that reached and engaged a large audience. Specifically, Lomotif activated over 150 influencers and the Lomotif brand received over 51 million views on TikTok and over 40 million Instagram story views. -- ZVV through its business arrangements with Zash completed its first TV series, Preach, and its first feature film, Camp Hideout. Both projects are expected to be monetized in the first half of 2022. -- Cryptyde is set to release the limited-edition Nick Cannon Presents: SucStress - The E-NFT Album, featuring Nick Cannon and the Ncredible Gang, on its E-NFT.com platform. -- Cryptyde 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 Companys subsidiary, Cryptyde, Inc. (Cryptyde), filed its preliminary Form 10 registration statement with the SEC in connection with the planned spin-off of Cryptyde, which currently owns, directly or indirectly, 100% of EVNT Platform, LLC, CW Machines, LLC and Ferguson Containers, Inc. The distribution date is expected to occur in early 2022. -- EVNT Platform, LLC launched a business effort, CW Machines, LLC, with Wattum Management, a global supplier of bitcoin mining equipment and services. The venture is expected to focus on simplifying consumer ownership of mining equipment through the integration of smart contract technologies.

Third Quarter 2021 Financial Highlights:

-- Cash, cash equivalents, and restricted cash totaled $149.9 million at September 30, 2021. -- Revenue decreased 11.5% to $2.23 million from $2.52 million in the third quarter of 2020, driven primarily by the decrease in sales of personal protective equipment in the Edison Nation Medical division. -- Gross profit margin decreased to 31.4% from 40.3% in the third quarter of 2020. The decrease is mainly attributed to the decrease in sales of personal protective equipment in the Edison Nation Medical division. -- Selling, general and administrative expenses were $25.9 million, of which $6.2 million was stock based compensation, $5.6 million was due to legal and professional fees related to transactions and filings, and $5.1 million and $6.2 million related to the operating expenses (excluding Stock Based Compensation) of ZVV and Lomotif, respectively, since the close of the Lomotif transaction on July 23, 2021.

-- Net loss in the third quarter of 2021 was $542.5 million, or ($7.59) per basic and diluted share, compared to a net loss of $2.8 million, or ($0.30) per basic and diluted share in the third quarter of 2020. The increase in the net loss is primarily due to the issuance of warrants during the quarter and the change in estimated fair value of outstanding warrants as of September 30, 2021, as well as the costs associated with the Lomotif transaction and the results of its operations, which were consolidated into the Companys financial results for the first time this quarter. On a non-GAAP basis, net loss for the three months ended September 31, 2021 without the $494.1 million of losses due to warrant activity was $48.4 million or ($0.68) per share. See below for reconciliation of Non-GAAP information to the most comparable measure calculated under U.S. generally accepted accounting principles (GAAP).

Vinco Ventures, Inc. Third Quarter 2021 Conference Call

Event Date: Tuesday November 23, 2021

Event Time: 8:30AM Eastern Standard Time

The audio conference call can be accessed through:

1- 877-407-2991 (U.S. participants)1- 201-389-0925 (International participants)

A live and archived webcast presentation will be available at: https://investors.vincoventures.com/.

Conference Replay:

A teleconference replay will be available until November 29, 2021.1- 877-660-6853 (U.S. participants)1-201-612-7415 (International participants)Passcode: 13725301

Vinco Ventures, Inc. and SubsidiariesCONSOLIDATED BALANCE SHEETS

September 30, December 31, 2021 2020 (Unaudited) Assets Current assets: Cash and cash equivalents $ 49,937,549 $ 249,356 Restricted cash 100,000,000 - Short-term investments 282,000 1,018,000 Accounts receivable, net 1,901,182 1,382,163 Inventory 789,727 1,127,725 Prepaid expenses and other current assets 3,855,618 522,259 Loan held for investment 18,150,000 - Current assets of discontinued operations - 1,042,680 Total current assets 174,916,076 5,342,183 Property and equipment, net 972,151 1,010,801 Right of use assets, net 80,544 153,034 Intangible assets, net 154,962,061 9,798,813 Goodwill 5,983,852 5,983,852 Non-current assets of discontinued - 5,739,524 operationsTotal assets $ 336,914,684 $ 28,028,207 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 5,587,010 $ 3,618,339 Accrued expenses and other current 3,040,564 2,101,610 liabilitiesDeferred revenues 64,243 152,040 Current portion of operating leases 83,408 96,777 liabilitiesIncome tax payable 27,643 27,643 Line of credit, net of debt issuance costs - 1,500,953 of $0 and $15,573, respectivelyCurrent portion of convertible notespayable, net of debt issuance costs of 28,481,485 577,260 $91,518,515 and $0, respectivelyCurrent portion of notes payable, net ofdebt issuance costs of $0 and $212,848, 15,357 1,301,212 respectivelyCurrent portion of notes payable ? related 112,835 1,389,923 partiesDue to related party 15,401 32,452 Current liabilities of discontinued - 487,454 operationsTotal current liabilities 37,427,946 11,285,663 Operating leases liabilities ?net of - 58,713 current portionConvertible notes payable ? relatedparties, net of current portion, net of 207,183 1,161,495 debt discount of $95,089 and $366,666,respectivelyNotes payable, net of current portion 166,061 595,879 Notes payable ? related parties, net of 2,500,000 1,403,756 current portionWarrant liability 468,612,700 - Total liabilities $ 508,913,890 $ 14,505,506 Commitments and Contingencies (Note 12) - Stockholders? equity Preferred stock, $0.001 par value,30,000,000 shares authorized as of $ - $ - September 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 September 30, 2021 and December 31,2020, respectivelyCommon stock, $0.001 par value,250,000,000 shares authorized 107,021,381and 14,471,403 shares issued and 107,021 14,471 outstanding as of September 30, 2021 andDecember 31, 2020, respectivelyAdditional paid-in-capital 617,952,342 39,050,260 Accumulated deficit (812,250,328 ) (23,648,898 )Total stockholders? (deficit) equity (194,190,965 ) 15,416,598 attributable to Vinco Ventures, Inc.Noncontrolling interests 22,191,759 (1,893,897 )Total stockholders? equity (171,999,206 ) 13,522,701 Total liabilities and stockholders? equity $ 336,914,684 $ 28,028,207

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 Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues, net $ 2,231,986 $ 2,522,141 $ 7,488,959 $ 9,649,469 Cost of 1,531,840 1,505,234 4,906,410 6,873,889 revenuesGross profit 700,146 1,016,907 2,582,549 2,775,580 Operating expenses:Selling,general and 25,869,419 2,617,961 43,471,951 8,185,477 administrativeOperating loss (25,169,273 ) (1,601,054 ) (40,889,402 ) (5,409,897 ) Other(expense) income:Rental income 17,136 25,704 71,543 77,111 Interest (27,012,312 ) (1,004,626 ) (42,422,726 ) (2,575,737 )expenseLoss onissuance of (206,948,147 ) - (415,803,862 ) - warrantsChange in fairvalue of (287,117,556 ) - (287,891,003 ) - warrantliabilityChange in fairvalue of (614,000 ) - (736,000 ) - short-terminvestmentLoss ondisposal of - - (301,645 ) - interest injoint ventureOther income 649,009 - 649,009 - Total other(expense) (521,025,870 ) (978,922 ) (746,434,684 ) 2,498,626 incomeLoss before (546,145,143 ) (2,579,977 ) (787,324,086 ) (7,908,524 )income taxesIncome tax - - - - expenseNet loss fromcontinuing $ (546,145,143 ) $ (2,579,977 ) $ (787,324,086 ) $ (7,908,524 )operationsNet lossattributableto (3,885,333 ) (37,439 ) (3,834,756 ) (15,198 )noncontrollinginterestsNet loss fromcontinuingoperations (542,309,810 ) (2,542,538 ) (783,489,330 ) (7,893,326 )attributableto VincoVentures, Inc.Net income(loss) from (153,320 ) (291,506 ) (5,112,100 ) 4,704,394 discontinuedoperationsProvision forincome taxesfor - - - - discontinuedoperationsNet lossattributable $ (542,463,130 ) $ (2,834,044 ) $ (788,601,430 ) $ (3,188,932 )to VincoVentures, Inc.Net loss per share:Net loss per $ (7.59 ) $ (0.30 ) $ (18.63 ) $ (0.29 )share - basicNet loss pershare - $ (7.59 ) $ (0.30 ) $ (18.63 ) $ (0.29 )dilutedWeightedaverage numberof commonshares 71,516,431 9,324,023 42,326,468 10,853,242 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

Nine Months Ended September 30, 2021 2020 (Unaudited) (Unaudited)Cash Flow from Operating Activities Net loss from continuing operations $ (783,489,330 ) $ (3,188,932 )attributable to Vinco Ventures, Inc.Net income attributable to noncontrolling (3,834,756 ) (15,198 )interestsNet loss from continuing operations (787,324,086 ) (3,204,130 )Adjustments to reconcile net (income) loss to net cash used in operating activities:Discontinued operations (5,112,100 ) - Depreciation and amortization 5,013,544 938,844 Amortization of financing costs 42,324,603 2,015,422 Stock-based compensation 16,829,359 2,765,022 Amortization of right of use asset 80,333 226,167 Gain on debt extinguishment (852,352 ) - Gain on divestiture 4,130,580 (4,911,760 )Change in fair value of short-term 736,000 - investmentsLoss on disposal of joint venture 304,643 Loss on issuance of warrants 415,803,862 - Change in fair value of warrant liability 287,891,003 - Changes in assets and liabilities: Accounts receivable (591,061 ) (1,037,432 )Inventory 232,213 (146,126 )Prepaid expenses and other current assets (2,835,791 ) (612,276 )Accounts payable 2,027,185 (367,355 )Accrued expenses and other current (356,941 ) 1,237,169 liabilitiesOperating lease liabilities (80,582 ) (219,608 )Due from related party (17,050 ) 4,753 Net cash used in operating activities (21,796,639 ) (3,311,310 ) Cash Flows from Investing Activities Purchase of property and equipment (281,164 ) (193,429 )Cash received from sale of assets of CBAV 2,529,565 - 1, LLCAcquisition, net of cash received (90,761,200 ) - Funding of loan receivable (20,150,000 ) - Net cash used in investing activities (108,662,799 ) (193,429 ) Cash Flows from Financing Activities Borrowings under line of credit - 1,144,100 Borrowings under convertible notes payable 122,000,000 1,660,000 Borrowings under notes payable 73,000 1,739,852 Repayments under lines of credit (379,333 ) - Repayments under notes payable (1,143,318 ) (947,127 )Repayments under convertible notes payable (1,498,462 ) - Repayments under notes payable- related (2,714,677 ) (14,508 )partiesFees paid for financing costs (10,205,678 ) (33,762 )Distributions (71,931 )Net proceeds from issuance of common stock 6,055,000 - Net proceeds from exercise of warrants 167,961,099 - Net cash provided by financing activities 280,147,631 3,476,624 Net increase (decrease) in cash and cash 149,688,193 (28,115 )equivalents, and restricted cashCash and cash equivalents, and restricted 249,356 412,719 cash ? beginning of periodCash and cash equivalents, and restricted $ 149,937,549 384,604 cash - end of period Supplemental Disclosures of Cash Flow InformationCash paid during the period for: Interest $ 976,282 $ 239,682 Income taxes $ - $ 235,725 Noncash investing and financing activity: Shares issued to note holders $ 422,672 $ 2,292,864 Shares issued to holder of line of credit $ 1,178,750 $ - Shares issued for the divestiture of Cloud $ - $ 405,000 B, Inc.Shares issued for the acquisition of $ 10,135,000 $ - Lomotif Private LimitedConversions under notes payable $ 31,251,007 $ 1,524,000 Issuance of warrants to note holders $ 102,938,515 $ 1,018,953 Shares reserved for EVNT, LLC $ 7,400,000 $ - Distribution for issuance of shares tononcontrolling interest members of Global $ - $ 699,000 Clean Solutions, LLC

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

Reconciliation to Non-GAAP Net Loss to adjust GAAP Net Loss to exclude losses from issuance of warrants and changes in fair value of warrant liability:

For the Three Months For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net lossattributableto Vinco $ (542,463,130 ) $ (2,834,044 ) $ (783,601,430 ) $ (3,188,932Ventures,Inc.Less: Loss onissuance of 206,948,147 - 415,803,862 -warrantsChange infair value 287,117,556 - 287,891,003 -of warrantliabilityAdjusted Netlossattributable $ (48,398,427 ) $ (2,834,044 ) $ (84,906,565 ) $ (3,188,932to VincoVentures,Inc.Net loss per share:Net loss pershare ? $ (0.68 ) $ (0.30 ) $ (2.01 ) $ (0.29basicNet loss pershare ? $ (0.68 ) $ (0.30 ) $ (2.01 ) $ (0.29dilutedWeightedaveragenumber ofcommon 71,516,431 9,324,023 42,326,468 10,853,242sharesoutstanding? basic anddiluted

About Lomotif

Lomotif is a 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 focused on empowering creators to share and watch short videos with ease through remix and collaboration. Yangs 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 that has grown worldwide as a grassroots social community with dedicated users spanning from Asia to South America to the U.S. For additional information about Lomotif, please visit Lomotifs website at www.lomotif.com.

About Cryptyde

Cryptyde, Inc. (anticipated: TYDE), is focused on leveraging blockchain technologies to disrupt consumer facing industries.

About Vinco Ventures

Vinco Ventures, Inc. (BBIG) is focused on the development of digital media and content technologies. Vinco Ventures consolidated subsidiary, ZVV Media Partners, LLC, a joint venture of Vinco Ventures and ZASH Global Media and Entertainment Corporation, has an 80% ownership interest in Lomotif Private Limited. For more information visit Investors.vincoventures.com.

Forward-Looking Statements and Disclaimers

This press release contains forward-looking statements as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which are based upon beliefs of, and information currently available to, Vinco Ventures management as well as estimates and assumptions made by Vinco Ventures 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 applicable company or its management identify forward-looking statements. Such statements reflect the current view of Vinco Ventures with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to Vinco Ventures and its subsidiaries and consolidated variable interest entities including Lomotif, their industry, financial condition, operations and results of operations. Such factors include, but are not limited to, uncertainties as to the completion and timing of the merger between Vinco Ventures and ZASH Global Media and Entertainment Corporation, the expected benefits from Vinco Ventures investments in Lomotif and related growth initiatives including anticipated acquisition of AdRizer by ZVV Media Partners and synergies between AdRizer and Lomotif, the expected benefits of Lomotifs participation in and partnership with live entertainment events such as EDC, uncertainties as to the completion and timing of the spin-off of Cryptyde, the failure to satisfy any conditions to complete the spin-off as specified in the Form 10, the expected tax treatment of the spin-off and the impact of the spin-off on the businesses of Vinco Ventures and Cryptyde, the expected benefits for Vinco Ventures, its shareholders and Cryptyde from the recent injection of businesses and assets into Cryptyde and the spin-off, and such other risks and uncertainties described more fully in documents filed by Vinco Ventures with or furnished to the Securities and Exchange Commission, including the risk factors discussed in Vinco Ventures Annual Report on Form 10-K for the period ended December 31, 2020 filed on April 15, 2021, and Vinco Ventures Quarterly Reports on Form 10-Q filed thereafter including the Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 filed on November 22, 2021, which are available at www.sec.gov. 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 we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do 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