Vinco Ventures (BBIG) Stock: Why The Price Substantially Dropped

By Amit Chowdhry ● Nov 24, 2021
  • The stock price of Vinco Ventures Inc (NASDAQ: BBIG) fell by 19.95% in the most recent trading session. This is why it happened.

The stock price of Vinco Ventures Inc (NASDAQ: BBIG) fell by 19.95% in the most recent trading session. Investors responded negatively to the company’s third quarter results.

Q3 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 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. And 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 company’s 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.

KEY QUOTE:

“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. 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.”

— Lisa King, Chief Executive Officer of Vinco Ventures

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.