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Tag: BBIG

  • Pros & Cons of Vinco Ventures Inc. (BBIG)’s Cryptyde Spinoff and Possible Stock Action

    The diverse holding company largely focused on digital media and content technologies, Vinco Ventures Inc. (BBIG) is finally completing its spinoff Cryptyde. The separation of Vinco and Cryptyde, its cryptocurrency & NFT unit will take place towards the end of May. While buying activity has been noticed to increase since the spin-off was first announced, BBIG stock is most likely to retrace once the separation has been completed.

    At present, BBIG stock is in the green with gains extending from the regular session to the pre-market on May 12. The stock added 6.05% in the regular session, which was followed by a further increase of 5.70% in the pre-market. Thus, the stock is currently priced at $2.78 a share while its year-to-date gain stands at 10.05%.

    BBIG’s Cryptyde Spin-off

    On May 5, the holding company declared May 18 as the record date for the distribution of dividend shares of Cryptyde, Inc. common stock to BBIG stockholders in connection with the separation. By May 27, each stockholder of Vinco will receive one share of Cryptyde stock for every 10 Vinco shares held by them. The separation will also entail cash to stockholders in lieu of fractional shares after the 10:1 distribution ratio.

    While the Registration Statement on Form 10 regarding the separation has not been declared effective yet, Cryptyde common stock is expected to commence trading on Nasdaq as a separate public company under the ticker “TYDE” following the separation. Vinco will continue to trade under its symbol “BBIG”.

    Cryptyde is a blockchain technology company focused on cryptocurrency and non-fungible tokens (NFTs). According to its CEO Brian McFadden, the spin-off will allow the subsidiary to scale its business without hurting shareholder value.

    Pros & Cons of the Spin-off

    Source: Forbes

    What does it mean for Cryptyde?

    The spin-off, while long being anticipated and much awaited by many, comes at a time that is not the best for a crypto unit. The global cryptocurrency market has been having a hard time lately and is expected to continue losses further ahead. All major cryptos, including Bitcoin, Ethereum, Solana, etc., have been plunging down sharply as the threat of a recession looms overhead amid geopolitical and economic instability. More than $200 billion were erased from the crypto market in just a day as the sell-off intensified yesterday. Bitcoin plunged to its lowest levels in 16 months, trading below $26,000, and Ethereum tanked below $2000 apiece. Even more so, the collapse of stable coin terra USD has spread a wider fear of broader declines. Thus, for a crypto spin-off, these times are rather a tumulus and worrisome.

    However, with a bullish long-term outlook of the crypto market and growing regard for NFTs and metaverse, if Cryptyde manages to amass retail crypto mining customers and brings its metaverse platform to life, the company could have a bright future.

    How will BBIG Take the Spin-off?

    For the company itself, the spin-off brings mixed realizations. On one hand, the spin-off will lead to further simplification of its business profile with a vast focus on social media and content tech while also removing the crypto-related volatility. On the other, BIGG is losing a huge opportunity for future growth and expansion.

    While the company will become primarily a social media and content technology platform post the separation, there is no guarantee for it to continue to do so. History has proven that BIGG is easily enticed by anything flashy that comes along. A few examples are its shift from a personal protective equipment company to a custom packaging products maker and the latest pivot to digital media with the acquisition of Lomotif, the TikTok-esque network.

    While there is an increasing trend toward video-making and sharing led by TikTok and the likes, the company’s stake in a similar platform Lomotif is, however, very unclear (Further comment in Financial analysis).

    BIGG Stock’s Possible Price Action

    While the hype surrounding the spin-off has continued so far, it will most likely die down once the separation is complete. The Cryptyde spinoff has been the only exciting thing that had BIGG going for months since the hype around its stake in the video-sharing app cooled down. Once the Cryptyde catalyst is out of the picture, the stock is most likely to retrace and a sell-off will be sparked. However, there is a chance that certain investors might hold on to their BIGG stock rather than Cryptyde given the extreme volatility and crash down in the crypto market.

    A Quick Look at BIGG’s Financials

    In late April, BBIG declared its financial results for Q4 and full-year 2021 which ended on December 31, 2021. Amid its transition to a digital media and content technology company, it reported a revenue decline of 18.5% to $9.8 million while gross profit increased 1.3% to $2.48 million. The revenue marked a big decline despite the company’s huge customer traction for Lomotif and its events.

    Net loss widened to $713.2 million against $5,2 million in the previous year, with a loss per share of $11.24 in 2021 and $0.49 in 2020.

    BIGG ended the year with cash and cash equivalents of $187.6 million, while short-term obligations totaled $243.0 million. Given the high inflationary pressure and rising interest rates, the company will have to resort to external financing, which would bring about further dilution.

    While the company claims Lomotif has generated millions of views and even ad revenue, it has not provided any kind of indication or guidance as to how much it expects to generate in revenue from the video-sharing app.

    Conclusion

    On one hand, while the spin-off opens new doors for both Cryptyde and BIGG in terms of growth for TYDE and business simplification and alignment for BBIG, it also comes with several cons. The crypto downfall will surely impact Cryptyde and the separation of a possible huge growth opportunity amid a questionable stake in Lomotif and declining cash along with the hype surrounding it, the company itself along with the stock might suffer even more. At the moment, BIGG stock is a speculative investment at best as there is no reliable indication of its value (Lomotif stake).

  • Vinco Ventures, Inc. (BBIG) stock is jumping high – What’s going on?

    Vinco Ventures, Inc. (BBIG) experienced an increase of 19.27% in the aftermarket despite the fact that McFillin Phillip Anthony sold 100,000 shares at a cost of $5 per share according to the SEC filing. However, the last trading session concluded at $3.01 with an increase of 2.73%.

    Third Quarter 2021 Financial Results – How was BBIG’s quarter?

    BBIG announced the third-quarter results of 2021 on 22nd November 2021. The company reported cash and cash equivalents of $149.9 million whereas the revenue was $2.23 million from $2.52 million. Moreover, there was a sudden decrease noticed in the gross profit margin when it declined to 31.4%. The drop is mostly due to a drop in safety equipment sales in the Edison Nation Medical segment. Furthermore, selling, general and administrative expenses came out to be $25.9 million. Last but not the least, BBIG experienced a net loss of $542.5 million.

    Operational Results by BBIG – More About it

    BBIG reported a joint venture with ZASH Global Media and Entertainment Corporation. It has acquired an 80 percent shareholding in Lomotif Private Limited. Moreover, Lomotif collaborated with EDC Las Vegas to launch the Lomotif brand in the United States. Lomotif engaged over 150 influencers, resulting in over 51 million TikTok views and over 40 million Instagram story views for the Lomotif brand. Last but not the least, ZVV completed its first TV series, Preach, and its first feature picture, Camp Hideout, as a result of its business partnership with Zash.

    Partnership with EDC Las Vegas – Worth it?

    On 12 November 2022, it was announced that Lomotif used its collaboration with EDC Las Vegas as a staging ground in the US cultural scene, with plans to launch in the United States in 2022. Lomotif’s largest domestic effort to date to spread awareness of the Lomotif platform was the EDC activation and alliance. Moreover, Lomotif experimented with cross-pollination between Lomotif and other prominent social media platforms, such as TikTok and Instagram.

    What’s New?

    Lomotif thinks that AdRizer, their social media accelerator, would enable scalable revenue via social media reach and frequency. Users will be able to buy advertising for as little as $5 each to improve their personal pages, and small companies will be able to market to hyper-targeted demographics. In addition, advertisers on Lomotif should be able to decide how often their ads are provided to different target audiences.

  • Vinco Ventures, Inc. (BBIG) Stock Trends Higher Ahead of Pending Finalization of Reverse Merger with Zash Global

    Vinco Ventures, Inc. (BBIG) Stock Trends Higher Ahead of Pending Finalization of Reverse Merger with Zash Global

    Vinco Ventures, Inc. (BBIG) stock prices were up by 7.2179% some time after market trading commenced on July 12th, 2021, bringing the price per share up to USD$4.08 early on in the trading day.

    Reverse Merger with Zash

    The company announced in January of 2021 a reverse merger with a private media company called Zash Global Media, with the fate of BBIG’s stock seeming to depend on the closing of the merger. Following the move, Zash will become the controlling company, while retaining both Vinco’s name and the BBIG ticker. The company hopes to allow BBIG to cover its losses in order to facilitate the expansion of the business. The reverse merger is expected to be approved some time in July of 2021.

    Acquisition of Lomotif

    The combined company also has plans on acquiring Lomotif, a contender of the market space currently dominated by the TikTok platform. The merger is designed to utilize data, metadata, and the Internet of Things, to meet the perpetually evolving demands of content developers, consumers, and creators. February 2021 saw Farnsworth and Ma acquire a controlling stake in Lomotif, facilitating the participation of shareholders in BBIG’s growth.

    Healthy Liquidity Position

    The company reported USD$5.5 million in cash as of March 31st, 2021, indicating a comfortable liquid position, including USD$1.68 million in receivables. Nevertheless, the company is running steep cash flow losses, as indicated by a loss from operations in the amount of USD$4.14 million for the first quarter of 2021.  May 24th, 2021 saw an accredited investor exercise warrants of the company’s stock, generating an additional USD$5.74 million.

    Emmersive Entertainment Spin Out

    June 24th saw the Vinco-Zash duo invest USD$2 million in Lomotif after receiving investment in the same amount. The same date also saw the company announce its spinning out of Emmersive Entertainment to its shareholder as a standalone public company. This sees the company enter the non-fungible token space, with the deal expected to close in the third quarter of fiscal 2021.

    Future Outlook for BBIG

    Armed with the recent string of collaborations, BBIG is poised to capitalize on the expansive opportunities afforded to it as it consolidates its existing market footprint while also expanding into other markets. Investors are hopeful that the company will continue to leverage the resources at its disposal to maintain its trajectory of success, thus ushering in sustained growth in the long term.

  • Vinco Ventures, Inc. (BBIG) stock set For Merger With ZASH Global Media And Entertainment Corporation

    Vinco Ventures, Inc. (BBIG) stock set For Merger With ZASH Global Media And Entertainment Corporation

    Vinco Ventures, Inc. (BBIG) stock a mergers and acquisition company focused on digital media space and consumer brands has extended its period to close the merger with ZASH Global Media till May 28, 2021. The renewed duration will provide the parties with a longer time span to declare a final contractual agreement and restructure both the party’s conditions for the merger including the finalization of an audit of Singapore-based Lomotif Private Limited, which ZASH will be acquiring side by side with Vinco Ventures Inc.

    The completed merger will bring ZASH public and also give Zash the majority shares in Vinco Ventures in addition to Lomotif, which is the main rival of TikTok.

    BBIG Stock Volatile Due to NFT Speculations

    A large number of users of social media such as Twitter have placed a bet on BBIG as potentially an NFT stock. However, there’s no official announcement from the company to create NFTs. This has created speculation among various investors due to which the stock price surged a few days ago due to unremunerated rumors.

    An NFTs is a non-fungible token. These are special cryptocurrency tokens that represent a unique digital item. The tokens can be used to buy and sell digital media. NFTs can represent digital files such as art, audio, videos and are stored on a digital ledger called blockchain, the same ledger which is used for cryptocurrency such as BTC.

    Hence BBIG stock is also sitting 191.2% higher since the start of the year with the stock’s daily average trading volume reaching 5.6 Million shares.

    Conclusion

    Vinco Ventures, Inc. (Nasdaq: BBIG) operates in the lucrative field of digital goods. Recent buzz on social media has suggested that the company is expected to get into the NFT space, however, the official stance of the company is still unknown.  BBIG long-term revenue growth and the rising stock price have proven to be a success and an expected investment in NFT’s has peaked investor expectation for the company. Furthermore, the acquisition of Lomotif, the direct competitor of TikTok has given the company a competitive advantage over its peers.

  • Vinco Ventures (NASDAQ:BBIG) earnings and profit surged during the third fiscal quarter

    Vinco Ventures (NASDAQ:BBIG) earnings and profit surged during the third fiscal quarter

    The results for the third quarter ended September 30, 2020 were released by Vinco Ventures (NASDAQ:BBIG).

    Revenues for the third quarter of 2020 rose to $4.25 million compared to $3.53 million in a year ago period, a rise of 20.34 percent.Gross profit for the third quarter of 2020 rose by $593,696 relative to gross profit for the third quarter of 2019, an increase of 60.06 percent .Gross margin for the third quarter of 2020 improved to 37.2 percent compared to the 28.0 percent gross margin for the third quarter of 2019.

    Profits from the third quarter of 2020 fell to $14.80 million compared to $15.24 million, a decline of 2.89 percent.Gross profit for the third quarter of 2020 fell by $4,343 relative to gross profit for the third quarter of 2019, a decline of 0.09 percent.Gross margin for the third quarter of 2020 rose to 32.6 percent compared to a gross margin of 31.7 percent for the third quarter of 2019 .

    In the q3 of 2020, the net loss was $2.87 million, or ($0.30) per basic and diluted share, relative to a net loss of $2.63 million, or ($0.44) in the q3 of 2019, per basic and diluted share.

    Compared to a net loss of $5.78 million or ($1.00) per basic and diluted share in the third quarter of 2019, the net loss for the first nine months of 2020 was $3.20 million or ($0.29) per basic and diluted share.

    In the third quarter of 2020, adjusted EBITDA, a non-GAAP calculation, amounted to negative $0.183 million, relative to negative $1.317 million in the third quarter of 2019.

    In the first nine months of 2020, adjusted EBITDA, a non-GAAP calculation, amounted to negative $ 1,100 million, relative to negative $ 1,511 million in the first nine months of 2019.