Vinco Ventures, Inc.

Q3 2021 Earnings Conference Call


spk_0: hurting and welcome to think oh ventures third quarter twenty twenty one earnings call at this time all participants are and i'll listen only mode if anyone should require operator assistance during the conference please press start zero on your telephone keypad as a reminder that conference is being recorded i would now like the turn a conference over to your host greg mcniff that's relations fervent go ventures to go ahead
spk_1: good morning and welcome to think adventures third quarter two thousand and twenty one financial result conference call i'm greg mcnabb investor relations for been called dentures also on the call today will be lisa king or chief executive officer and philip jones they goes incoming chief financial officer today cause is being webcast live and will be archived on investor relations section of the website and investors that bingo ventures dot com were earning specialists is currently available certain matters will be discussing today including our girl strategies and expected growth opportunities and performance center around have a of platform as well certain transactions weeks back to complete a pure gold are forward looking statements such statements are subject to the risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements these risks and uncertainties are discussed in our documents filed with the fcc recording our annual report on one ten k for the period ended december thirty first two thousand twenty filed on april fifteenth two thousand twenty one and quarterly reports on form ten kill filed their after recording or quarterly report for the quarter ended september thirtieth two thousand twenty one file today in addition to us gap reporting go report certain financial measures that do not conform to generally accepted accounting principles we believe these non gaap measures enhance the understanding of our performance reconciliation between gap and non gaap measures are included in the tables found in today's press release and with that unlike like the term call of to lisa
spk_2: good morning everyone and thank you for joining today we're pleased to report a third quarter was out the for i discuss some of the highlights of the quarter i'd like to take a few moments to review the progress we've made on our strategy that building a global media and content platform during the quarter along with our joint venture partners as global media he completed the acquisition of an eighty percent interest and lamotta one of the global pure play video sharing social networking platform we believe the know that it's one of the fastest growing video sharing social networking platform in that category over the last three years with over two hundred and twenty five million installation of the lamotta fat globally that it's watch over ten billion atomic clips of user generated content have been used to create more than seven hundred and fifty nine and videos on the platform that it's launch will be a motive as the centerpiece of our strategy to become a pure five media and entertainment company we intend to monotype the platform to our land acquisition of adviser even media partners llc our joint venture with that global media a planned acquisition he announced in early october i'd rather one felt real time programmatic add transaction and has direct agreements with agency than advertisers on it's own proprietary a i focus platform we believe the adviser exhibition for rapid growth in digital advertising and the expected capabilities will enable us to monetize la mode it's growing brand awareness through advertising sponsorship as the party they're still in negotiations to enter into a definitive agreement for the adviser acquisition or share more about the strategy later as we progress with this transaction in addition he expected build you live media platform by working with our joint venture partner bashful the media to combine of content creation and distribution initiative with the motives potential for a flywheel growth model which we believe it can drive significant revenue growth we believe that la mode if an adviser will be complemented by oh honey badger media and edison nation brown which will remain with simcoe honey badger is a digital commerce company that provides digital campaign and leverage the network of millions of followers and an impressive catalogue of celebrity than influence there's to grow advertising revenue honey badger bring a proprietary month beijing process that converts traffic to dollars employed content arbitrage to capitalize on that the traffic and leverage is the power plant that the nation allows inventors to create distribute market and monetize their products for licensing agreements what i've described above the vision we have for the transformation of been go to a media and entertainment company finally to complete transformation we announced a plan spin off of a block chain subsidiary crypto which is expected to be completed by early next year to give you a sense of are operational progress i'd like to briefly touched on some notable development just last month for noted partnered with either si las vegas to of some of the motive for ad in the us to a three day about it reached an age a large audience but typically the motive activated over a hundred and fifty influencers another motive plan pursued over fifty one million views are checked out and over forty million instagram story views not only did the gaelic feed our expectations but the cross platform pollination with other social media la mode if it's on it's way to becoming a recognizable brand of us this made us believe that the motive has the potential of the coming unbeaten content platform we also recently announced the launch of my motive india a channel focused on local trend for subscribers can collaborate and engage with content creators initial feedback has been very positive we're very excited about the potential the market and we expect to roll out more feature soon but currently pursuing opportunity to expand the motive for and another markets and we expect to be able to share more detailed about progress on our next update in summary i'm encouraged by execution in the third quarter we believe our strategy to focus the company on a large and growing media and entertainment market coupled with a robust social media platform what additional twelve and long term growth with that are now turn the call over to fill to discuss our financial results in more detail fell
spk_3: thank you very clearly to join the team and i'd like to think greg roman for ensuring a few with transition a you will continue to be said for a company until the twentieth of krypton where you met office during a fearful before just the result of the third quarter of to highlight a few of the reason for travelling on the left update first and foremost the completion of the acquisition of the motif in july two gb the media partners or joint venture with that global media has a significant miles from the company and the culmination of a lot of hard work for any first during the quarter we began to consolidate the result of the motif tv be media partners are consolidated variable interest on it during the quarter of a motif continue to focus jeffords on expanding it plan and user base a crossfit markets and we are thrilled to have them in video it can we during the third quarter we re the hundred and ninety three million dollars of which ninety three million was from carbon tax sales and issue into this for the exercise walk along with one hundred million from the proceeds of a convertible note offering which were used to fund the cat component of the acquisition of our membership interest vv media partners have a hotbed of ninety two million dollars as of september thirtieth we had approximately hundred fifty million cash of which one hundred million is restricted in a deposit account control agreement under the provisions of the convertible notes during the quarter and subsequent kim corner and we've had virtually raise significant capital to the exercise of issued warrants believe the divorce capital about the funding needed to continue to build out our business and help fund he could potentially existence as of today we have approximately one hundred and sixty five million in cash which include the hundred million in restricted cash the bigger impact more third quarter of a nine month result will be lost recognize on the if you want to warrant and change it estimated fair value of outstanding warrant at the end of september specifically as of september thirtieth the company had warrants outstanding for the purchase of approximately ninety three million shares of common stock which is say we exercise for cash would raise approximately three hundred seventy seven million dollars and funds for the company okay with these warned in a four hundred fifty nine nine million dollar warrant liability reported on the balance sheet as of september thirtieth two thousand twenty one it is important to understand that this warm liability noncash liability the will change in volume of probably share price fluctuate and will eventually be eliminated due to either the exercise your exploration of the underlying more however and yeah liability and impact on our financial results may be significant the be a significant element for the company during the stage of evolution so wanted to highlighted here
spk_1: as we saw the third quarter the total off from worn activity was the one hundred and ninety four million or ninety one percent of our net loss for the quarter
spk_3: after consideration for the impact of the weren't related last remaining result of operations reflect the early stage of the transition of go to media and current and future during the third quarter the company continue to rabbit focus on implementing the steps necessary to build it internal resources and work with the legal teams and advisors to execute it's capital races business strategy for the due diligence related to a number of potential acquisition transactions necessary to complete the continuing work for that and finally the spin out of quicktime business revenue for the quarter decrease eleven point five percent which was mainly attributable to arrive you decrease in our edit the naked medical division to to the reductions demand for personal protective equipment company incurred operating expenses of twenty five point nine million dollars during the third quarter of twenty twenty one of which six point two million was stock based compensation five point six million way to the legal and professional fees related to the transactions and a total of eleven point three million related to the operating expenses of dvd media corners and the motive respectively and close to transaction on july twenty third
spk_1: operating expenses for the same period a year ago for not directly comparable given the significant changes the bit of has undergone over the past year
spk_3: both described earlier or nap or net loss was significantly impacted by the four hundred and ninety four million in losses related to the issue and and revaluation the warrant liabilities during the quarter or net lot for the quarter was five hundred and forty two million or seven dollars and fifty nine cents per share on a non gaap net loss for the quarter without the night four hundred and ninety four million a lot of is due to the worn activity has forty eight million or sixty eight cents per share we prefer to are presently melting a third quarter result for the corresponding gap reconciliation when looking at the catalogue statement or use of i i the significant impact of noncash related expenses on our net income for the nine months ended september thirtieth or net use of cash for operations with approximately ninety million of which nine point four million was used during the third core in addition we provided loans to our joint venture partner that in anticipation of the business combination totally eighty million for the nine months ended september thirtieth of which thirteen month occurred during the third quarter when viewed in that perspective i believe that the company's current operations for commensurate with the cash in capital resources it has been able to it will we to the balance sheet the company i believe in a strong position highlighted but cash and richer to catch belt
spk_4: bounty author reflect the increase in assets of result of come consolidation of them motif most notably it's candle at that so she had it with a limo keep up case
spk_3: as of september thirtieth the company had three hundred and thirty seven million and as compared to twenty eight million at the beginning of the year the liability section of the balance sheet reflect the increase working capital requirements related to the growth in the company's operations along with the impact of the convertible notes which is lifted know of debt issuance cost and finally the ever mentioned warrant liability a four hundred million from i encourage everyone to review or form thank you five yesterday with at the same for further details on our dog along with other information important to understand the company lastly i wanted to get everyone on the proposed spin off the crypt i been on november eighth the preliminary form ten for the protection of was filed with the fcc we currently expected the distribution motor early twenty twenty two repay between out the new business arrangement cw me scenes with water global supply or bitcoin mining equipment and services
spk_2: joint effort will be focused on for divine consumer ownership of mining women through the integration of smart contract technologies
spk_0: he would that the to turn call back to with of for closing remarks

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