Since last year, Vinco Ventures Inc. (NASDAQ: BBIG) stock has been a particular favorite among retail ‘meme stock’ investors. As the company is transitioning into the lucrative digital media and AI sectors, BBIG stock could be a smart long-term investment. While the company is expanding into the published media sphere thanks to its recent acquisition of 3 tabloids, BBIG is emerging as one to watch this month thanks to TikTok being potentially banned in the US.
With Lomotif under its umbrella, BBIG stands to benefit the most from such a ban as millions of TikTok users would migrate to Lomotif. Considering the growing concern over TikTok’s privacy practices and relationship with the Chinese government, a ban on the short-video platform appears to be likely. In light of this, BBIG stock could be one to buy at its current dip in anticipation of more updates regarding this matter.
BBIG Stock News
Since 2021, BBIG has been an attractive investment for many given its continuous ventures into lucrative markets including NFTs and social media. While investors remain excited about the potential behind each of these projects, they are most bullish on BBIG’s Cryptyde Inc. spinoff. The spin-off would position Cryptyde as a stand-alone, Nasdaq-listed company trading under the ticker: TYDE.
Cryptyde
As a selective acquisitions company, Cryptyde is designed to focus on leveraging disruptive blockchain technology in a variety of ways. The company’s operations will include three business lines: Web3 products, Bitcoin mining services, and consumer packaging operated by Ferguson Containers. On the Web3 side of things, Cryptyde will acquire and build brands using blockchain technology to disrupt consumer-facing industries.
E-NFT.com
So far the company has already achieved this with E-NFT.com and Emmersive Entertainment (EVNT). Currently it’s a platform for artists and content owners to distribute their IP through its proprietary streaming process. This makes it more affordable in terms of mining fees but EVNT itself makes money through the development of this digital artwork and music sold as NFTs through a third-party marketplace.
The team works with artists, celebrities, and sports stars to create collectibles featuring digital signatures, audio, and movement, with both physical and digital ways to view and interact with them.
The platform has already had some success since its co-founder – Tory Lanez – sold out his platinum album as an NFT within a minute on the site. It also has attracted the attention of Flo Rida who is a co-founder and strategic adviser for Emmersive Entertainment.
Web3
In addition to music, Cryptyde is looking for opportunities to move towards movies, gaming, digital art, ticketing and event services in the future. This is likely connected to BlockHiro, LLC which is expected to become a Web3 Business using decentralized blockchain technology in established consumer facing industries. As is, Cryptyde still plans on minting its own coin to use across these various projects.
Bitcoin Mining
As for its Bitcoin mining services, Cryptyde’s joint venture CW Machines has already launched its crypto mining equipment reselling business and welcomed its initial customers in Q1. In short, CW Machines is a reseller of Bitcoin mining equipment and services – particularly equipment such as Antminer S19s, Antminer S19 Pros, Whatsminer, and Canaan. It also includes reselling co-location services which offer a physical location and ancillary services from third-parties for Bitcoin mining.
Freescape
According to its investor deck, Cryptyde will also be venturing into AR and VR with Volmax and pairing that with Ocuverse and/or Freescape. Cryptyde’s Freescape Metaverse characters have already been developed and are expected to be launched in Q2 2022 and Q3 2022.
Freescape is a character driven virtual ecosystem comprised of themed interactive environments. Users will be able to explore activities like concerts, movies, and more in the metaverse. With its “Space Cowboys” characters already developed, the Metaverse could attract a lot of attention given its unique avatars, five in-game worlds, and storyline tied to a six-figure cash prize.
The website states that there will be only one winner who guesses the mystery plot twist which is likely tied to the game’s storyline. Built around a world where automation has induced such large scale joblessness that legislation was passed by the US government “to provide a simulated life and persona for all of the US population”, Freescape promises to have clues spread throughout Freescape and its partner’s platforms.
Ferguson Containers
Underlying all of this is Ferguson containers which manufactures and sells custom packaging for products. Ferguson is an important piece of the spinoff since it will provide the initial revenue stream for Cryptyde. It’s already well established having been in operation since 1958 and sells its products to pharmaceutical, industrial, food and beverage, and e-commerce distribution industries.
According to Cryptyde’s second amendment to its registration statement – which included the 2021 financial report of Ferguson Containers – Cryptyde could be well positioned to explore its different ventures thanks to Ferguson. As is, the financial report highlighted significant growth for the subsidiary which reported almost $8 million in revenues. Considering that it is already producing revenue, Cryptyde could be in a strong position following its spin-off.
Cryptyde Spinoff
With many investors anticipating Cryptyde’s spin-off, BBIG stock received a major boost after the company announced a share dividend of Cryptyde for BBIG shareholders as of May 18th. Based on this dividend, holders of 10 BBIG shares will receive 1 share of Cryptyde with the dividend expected to be distributed around May 27th. BBIG’s management updated shareholders that investors who hold BBIG shares through May 27th will also receive one share of the new company for every 10 shares of Vinco Ventures.
After announcing its intention to spin off Cryptyde, BBIG also announced that Cryptyde has entered into definitive agreements to raise $42 million. According to this agreement, Cryptyde will sell $33 million worth of convertible notes to an investor for $10 per share and will sell an additional 1.5 million shares to another investor for $8 per share.
Cryptyde’s CEO Brian McFadden was thrilled about both agreements and believes “the capital will allow the company, after its expected spin-off, to scale its business model at an expedited pace without sacrificing shareholder value”.
TYDE Stock Price
Many BBIG shareholders have speculated about the starting TYDE stock price and now investors appear to have some insight based on a securities purchase agreement which Cryptyde entered into. This agreement was for the sale of a senior convertible note worth $33.3 million.
According to the terms of this agreement, the note holder is able to purchase up to 3.3 million shares at a conversion price of $10. Given that Cryptyde issues these shares to the noteholder, many investors are bullish TYDE stock price could be $10. Based on this, some BBIG shareholders are speculating that the upcoming share dividend will yield the equivalent of a $1 profit per each BBIG share. If that is the case, BBIG shareholders could see significant benefit from the TYDE stock dividend.
BBIG Stock Merger
As for BBIG itself, the company’s investments in Blockchain and NFTs all started when Vinco Ventures announced a reverse triangular merger with Zash Global Media to form a joint venture entity.
Lomotif
At the time the company’s “crown jewel” was expected to be Lomotif – a short-form video platform – which is often referred to as one of Tiktok’s closest competitors. The two companies combined were valued at $5 billion since the platform had established itself globally with more than 300 million videos viewed per month in over 300 languages.
Today, BBIG is actively promoting the application in the US as well as in India where TikTok is banned. Given that India is the fifth largest economy and the second largest population in the world, Lomotif is well-positioned to capitalize on this major market.
Lomotif’s platform actively encourages its users to share their videos on other platforms like TikTok, Twitch, Instagram, and Twitter. But BBIG is focused on developing Lomotif with influencer marketing and attracting new users through live streaming events like music festivals.
Last March, BBIG successfully attracted 7.2 million users and generated 16 million visitors to Lomotif media sites at the Okeechobee Music and Arts Festival. Based on this, Lomotif became one of the top 50 downloaded social apps in the Apple Store at the time.
However, this was made possibly because of AdRizer – one of BBIG’s most important assets. In this way, 86% of the traffic came from AdRizer’s promotion of the festival on YouTube. This highlights how BBIG uses the synergies between its different assets to promote one another.
AdRizer
In February, BBIG completed its acquisition of AdRizer – a technology solutions provider that uses AI for digital advertising – for $38 million and up to 10 million shares issuable on January 1, 2024.
From the start, BBIG considered AdRizer a tool for promoting its other brands which led CEO Lisa King to comment that “we are now focused on deploying AdRizer’s technology platform to monetize the content creation and streaming capabilities of the Lomotif short form video app through digital advertising”.
AdRizer works through its core platform – Cortex – to provide analytics for marketing spend, revenue optimization, and ad campaigns in real-time. It integrates with Google, MSN, Instagram, Facebook, Twitter, and more to gather data on different metrics.
For this reason, AdRizer’s audience is mainly advertisers, advertising agencies, publishers and the like. It generates revenue through traffic acquisition of digital advertising spaces and by developing marketing campaigns and strategies through Cortex. Its appeal is that the platform can work easily with small- to medium-sized enterprises to help them control their marketing and branding campaigns in real-time.
If BBIG is successful, AdRizer will help it not only monetize Lomotif but its other entertainment platforms as well. The most obvious connection is between AdRizer and Lomotif because as Lomotif’s audience grows and worldwide engagement increases, AdRizer’s analytics and advertising will be able to leverage it hand in hand with the app.
But this also ties into BBIG’s Honey Badger Media subsidiary as well. This digital commerce company is essentially a way of building brands for influencers. Honey Badger engages with their existing audiences and expands them with targeted marketing, management, and strategies.
As is, Honey Badger generates 1.5 billion video views a month and 10 billion video views each year. In this way, it leverages the millions of followers in its network to grow advertiser-based revenue through its digital marketing services for brands and influencers.
Given the synergies between these different platforms, BBIG’s decision to spinoff Cryptyde will allow it to focus on utilizing AdRizer to its fullest capabilities. Already the company’ revenue has quadrupled from the year ago quarter, largely due to its acquisition of AdRizer. This helped increase the company’s revenue 349.7% from the first quarter of 2021 to $11.5 million in Q1 of 2022.
Institutional Ownership
In light of AdRizer’s potential. its not surprising to see more institutions taking notice of BBIG’s long-term potential. Currently, institutions hold 24.3 million shares of BBIG’s 174 million float. Institutions have been increasing their investments since December but in May many new institutions have opened long positions on BBIG. Some of the company’s largest shareholders are Group One Trading, L.p., Bluefin Capital Management, Llc, Susquehanna International Group, Llp, Vanguard Group Inc, Jane Street Group, Llc, and Susquehanna International Group.
On the 17th, Jane Street Group purchased 5.2 million shares worth of calls – the equivalents of more than $10 million – which reflects the growing bullish sentiment for BBIG stock.
*Updated August 3rd, 2022
Management
Looking to accelerate its merger with Zash Global Media, BBIG appointed Zash’s co-founder and chairman Ted Farnsworth as co-CEO alongside King. Through his role with Zash, Farnsworth played a pivotal role in closing the acquisitions of Lomotif and AdRizer by BBIG and ZVV. A respectable veteran in the media industry, Farnsworth has built several successful companies thanks to his experience in strategic development, marketing, public relations, and consumer behavior. Based on this, Farnsworth’s appointment could add value to BBIG as it looks to continue growing Lomotif and AdRizer. By adding Farnsworth as a co-CEO, BBIG and Zash could now work in tandem to execute the company’s growth strategy. In light of this, the closing of the much-anticipated merger with Zash could be on the horizon.
Although this appointment could be promising for BBIG stock’s future prospects, the company has been making headlines lately for all the wrong reasons. Recently, the company shared PR announcing the termination of both King and Farnworth along with other directors for attempting a “hostile takeover” of the company. However, the PR stated that BBIG’s board appointed Coluccin and Farnsworth as co-CEOs – with King appointed as president of ZVV. In light of this PR, BBIG stock dropped to an all-time low due to the negative impact of the news on the company’s plans and operations.
However, Farnsworth assured investors that this PR was unauthorized and contained false statements made by Colucci. At the same time, Farnsworth accused Colucci and the other independent directors of delaying the closing of BBIG’s merger with Zash. Despite the ongoing internal issues within the company, BBIG stock could be a low-risk investment considering that the stock is bottomed out.
On a more positive note, BBIG stock has been gaining increased interest from investors recently after Zash appointed Erik Finman as its CEO. As the youngest bitcoin millionaire, Finman is a successful entrepreneur and investor. In light of his success, Finman was featured in Forbes, CNBC, and VentureBeat. At age 15, Finman dropped out of high school and moved to San Francisco to start an education startup providing an alternative to the educational system – Botangle – which he eventually sold for 300 bitcoin. Meanwhile, Finman launched a satellite into space to complete a crypto space drop to a school in Ghana. Later known as the Zash satellite, this satellite was then used to drop the world’s NFT space with Snoop Dogg and Grimes at EDC Las Vegas 2022.
Considering his status as a prominent crypto expert, Finman will be responsible for expanding crypto and NFT initiatives for Zash in addition to its multimedia ecosystem. With Zash looking to expand into the web3 space, BBIG stock could be a profitable long-term hold as the company works to finalize its merger with Zash. Since both companies combined were given a third-party valuation of $5 billion, BBIG stock could be one to buy as the stock is at its bottom.
With this in mind, many investors are bullish on BBIG’s potential after the appointment of Finman as he is active with shareholders on Twitter and Reddit. On that note, Finman is scheduled for an interview on Discord this week which will be streamed to YouTube where he will answer shareholders’ questions. Based on this, investors are anticipating Finman to share positive news regarding the company and the much-anticipated merger.
*Updated August 17th, 2022
Trading Resume
After being halted for almost 2 weeks due to NASDAQ’s “request for additional information”, BBIG stock resumed trading yesterday and surged by as much as 100%. This surge has been mainly driven by the ongoing lawsuit filed against Farnsworth, King, and other directors for their alleged hostile takeover attempt of the company. With this in mind, many investors are increasingly bullish that Farnsworth and King could be reinstated due to shady actions by Colucci and other independent directors. These actions included laying off 80% of the company’s employees and defaulting their salaries for cost savings despite the company having $140 million in its bank accounts which was highlighted during yesterday’s hearing. With additional hearings planned for this week, investors are bullish BBIG stock could be set for a rebound if Farnsworth and King are reinstated.
New Social Platform
Meanwhile, it is worth noting that BBIG – under Colucci’s leadership – entered into an agreement with AI Pros to use its tools in developing a social media platform with the goal of becoming a TikTok competitor. In addition, this platform will be focused on the US and Canadian markets as opposed to Lomotif which mainly targets the ripe Indian market where TikTok is banned. At the same time, this platform will be integrated with AI Pros’ advertising platform which is a bearish sign considering that AdRizer has been successful in monetizing Lomotif.
Based on this deal, it appears that Colucci is moving away from BBIG’s vision of developing Lomotif and monetizing it through AdRizer which could jeopardize the company’s anticipated merger with Zash. In light of this, reinstating King and Farnsworth could allow BBIG stock to further climb since their vision for BBIG’s future is more appealing to investors.
*Updated August 27th, 2022
Finman’s Interviews
While BBIG is unable to move forward with its merger with Zash due to the ongoing court case, Zash’s CEO Finman discussed some developments regarding Lomotif in interviews over the past weekend. As Finman believes a TikTok ban in the US is approaching, Zash has been working to further develop Lomotif to be able to attract TikTok’s user base upon this potential ban. To facilitate this, Zash is currently working with Lomotif to improve the platform’s algorithm. At the same time, Zash is working to promote Lomotif across social media platforms and is hiring a social media team to oversee this strategy.
Meanwhile, Finman plans to capitalize on TikTok’s biggest weakness which is not compensating content creators properly. For this reason, Zash intends to offer content creators better compensation for their content to attract them to Lomotif. In light of these plans, Lomotif could be a major TikTok competitor in the US even if TikTok is not banned – which could be reflected on BBIG stock price when the merger is closed. For this reason, Finman is confident BBIG stock could be extremely undervalued at its current PPS.
On that note, Finman shared during his interviews that Zash’s merger with BBIG was imminent before the court case. With this in mind, Finman is bullish the merger could be closed shortly after the case is closed which he believes could be in the coming 60 days. In addition to these updates, Finman addressed the lack of communication from BBIG’s management and pledged to make King or Farnworth appear in an interview with shareholders to increase transparency with shareholders. With Finman’s transparency attracting more interest in the company, BBIG stock could be poised for major growth when the ongoing case is closed.
Management Structure
Considering BBIG’s ongoing case, the company added Ross Miller as a third co-CEO to work alongside King and Coluccin according to a court order from the State of Nevada. In this way, BBIG could move forward with its growth plans to provide value to its shareholders. With this in mind, many investors are bullish on Miller’s appointment thanks to his respectable background. In addition to getting elected as the youngest Secretary of State in America from 2006 until 2014, Miller served as CEO and president of BKB Global – a subsidiary of DirecTV. Moreover, Miller was a senior vice president and general counsel of Paragon Gaming. Through his experience and background, BBIG appears to be in a good position in anticipation of the court’s final ruling regarding the ongoing case.
NASDAQ Notice
As the company has not released its Q2 financials yet due to the ongoing case, BBIG received a notice from the NASDAQ that it is not in compliance with the NASDAQ’s listing requirements. As a result, BBIG has until October 17 to submit a plan to regain compliance with the NASDAQ requirements. If the company’s plan is accepted, BBIG could be granted until February 13, 2023, to file its late financials to regain compliance. With this in mind, BBIG is working to file its financials as soon as possible and intends to submit a plan of compliance in the near future. Since investors are speculating the Q2 financials could have record revenues thanks to AdRizer, BBIG stock could be poised to soar when the company successfully files its Q2 report.
*Updated October 24th, 2022
New Board Structure
While the legal issues have hindered BBIG in the near past, the company appears to be on the right track moving forward after reaching a settlement agreement in its litigation. According to this agreement, Ross Miller was appointed as BBIG’s sole CEO while Gabe Hunterton was appointed as the company’s president. Meanwhile, former CEO Lisa King and former president Rod Vanderbilt remained part of BBIG’s BOD.
At the same time, former co-CEO John Colucci and former CFO Philip Jones resigned from their positions – ending their ties with the company. Now that the legal issues are behind the company’s back, Miller promised to work aggressively with the rest of the board to complete the Q2 filings as well as the merger with Zash. In light of this, BBIG stock could be a bargain at its current PPS in anticipation of these major catalysts to unfold.
With this in mind, BBIG has already submitted its plan of compliance with the NASDAQ regarding its delayed financials on October 17. Considering that the management feuds are now a thing of the past, the plan is likely to be accepted by the NASDAQ which would give BBIG until February 2023 to post its Q2 report. In this way, BBIG is one to watch closely in the near term in anticipation of more news regarding this matter.
Lomotif Upgrades
As for the company’s largest asset – Lomotif – BBIG shared that Google Ads is now integrated inside the Lomotif app following the launch of Lomo Ads’ beta version with AdRizer and Mind Tank’s programmatic ad platform. In this way, Lomotif would feature ads for major companies like Coca-Cola, Starbucks, Verizon, and AT&T. This beta version will allow programmatic and automatic advertising within Lomotif with the goal of allowing a revenue-share on advertising with creators to enhance the platform’s creators economy. On that note, this feature is expected to be pivotal for Lomotif when the platform integrates with blockchain technology – allowing for full transparency on the platform. With the company continuing to work with Zash to improve the Lomotif platform, the much-anticipated merger could be on the horizon.
Authorized Shares Reallocation
On that note, speculations are growing rapidly about the date of the merger with Zash after BBIG filed an amendment to its Articles of Incorporation to reallocate its 250 million authorized shares as 245 million common shares and 5 million preferred shares. Considering that preferred shares could be used for closing mergers and acquisitions, BBIG could issue these preferred shares to Zash to finalize the deal since preferred shares could have different values from common shares. As the merger appears to be approaching, BBIG stock’s future outlook could not be any brighter.
*Updated February 7th, 2023
VVIP Joint Venture
Focused on developing digital media and content technologies, BBIG entered into a JV with ICON Publishing (VVIP Ventures) to acquire the National Enquirer, the National Examiner, and Globe tabloids from a360 Media, LLC in a cash deal. This deal also includes all print and digital assets, as well as owned IP of these tabloids. In this way, more than 96 years of content will be brought into BBIG’s multimedia ecosystem – allowing the company to utilize this content across its digital, TV, and social divisions. Moreover, VVIP has an exclusive right for a 90-day period to discuss additional business collaborations with a360 Media. Considering the potential synergies this acquisition provides to the company, BBIG could be poised to significantly grow its revenues in the future.
With that in mind, these tabloids are already well-recognized and BBIG expects their popularity could further grow thanks to its digital ecosystem. At the same time, these tabloids could add significant value to BBIG’s shareholders through in-sourcing and cost synergies. On that note, BBIG intends to utilize AdRizer to create new monetization opportunities for the news portfolio. Additionally, BBIG will utilize Mind Tank to distribute content related to the acquired media portfolio through social media and discovery networks across all platforms. Through this digital ecosystem, BBIG could be on track to achieve its target of becoming one of the largest global content publishers in the celebrity niche.
Meanwhile, BBIG plans to leverage the National Enquirer’s archive, investigative journalism, and breaking news to secure TV, film, and podcast licensing partnerships. Moreover, BBIG could create new productions based on this content which could allow the company to realize additional revenues in the future. Given the potential of this deal, BBIG stock could be one to watch over the coming months in anticipation of the deal’s completion.
Compliance With NASDAQ Rules
In the meantime, investors are anticipating BBIG to file its late Q2 and Q3 earnings. With this in mind, BBIG recently receive an extension notice from the NASDAQ to file its late earnings by February 13. With this date approaching, BBIG stock could be poised to run this week since the financials could include revenue growth thanks to AdRizer.
Furthermore, BBIG is not compliant with the NASDAQ rules regarding its annual shareholders’ meeting since the company has not held a meeting within a year of the end of its fiscal year. As a result, BBIG was given 45 days to submit a plan to regain compliance with this rule where if the plan is approved, BBIG would have until June 29 to regain compliance. On that note, BBIG intends to submit a plan where the company would hold its annual meeting by March 31. Since the company appears to be on the right track to regain compliance with the NASDAQ rules, BBIG stock could be a bargain at its current PPS in anticipation of its catalysts to play out.
BBIG is also non-compliant with the NASDAQ minimum bid price requirement after failing to maintain a closing bid price of $1. With the company now in its 180-day compliance period, BBIG stock could regain compliance by maintaining a closing bid price of $1 for 10 consecutive business days. With the company preparing to release its late earnings soon, BBIG stock could be on track to climb past $1 on positive financial results.
*Updated February 22nd, 2023
Syndication Agreement
Following its recent tabloid acquisitions, VVIP entered into a multi-year content syndication agreement with a360media providing the JV with access to digital media content from a360media’s celebrity brands including In Touch, Star, Closer, and Life&Style. The content syndicated by VVIP will also be monetized on BBIG’s sites including Lomotif. By further expanding its digital content offerings, BBIG has the potential to significantly increase its audience across all brands.
To monetize this content, BBIG intends to utilize AdRizer to create new monetization opportunities by creating a virtual trading platform for publishers and advertisers providing them with the best advertising return on investment. At the same time, BBIG plans to use Mind Tank to create and distribute easily consumable content through social media and discovery networks across all platforms. By utilizing the capabilities of AdRizer and Mind Tank, this content syndication deal has the potential to become extremely profitable for BBIG.
Regaining Compliance
In the meantime, investors are increasingly bullish BBIG could regain compliance with the NASDAQ requirement after the company posted its late Q2 report. With this in mind, the company is yet to file its late Q3 report which it plans to file by March 8. As the company is on the right track to regaining compliance, BBIG stock could be one to watch this month as it could soar on the filing of its Q3 report.
*Updated March 7th, 2023
TikTok Ban
On March, 1, the US House’s Foreign Affairs Committee voted to put an act to a vote of the full House and the Senate that would give President Biden the ability to ban TikTok across the nation. This would be through Biden imposing penalties that would limit TikTok’s operations in the US. Since BBIG now fully owns TikTok rival – Lomotif – the company is well-positioned to benefit the most if TikTok is indeed banned in the US. With this in mind, BBIG recently announced that its short-video platform is ready to fill the void that would be created with the potential ban of TikTok. In light of this, BBIG stock could be poised to soar as we approach this vote.
Meanwhile, TikTok’s CEO Shou Zi Chew is set to testify in front of the House Energy and Commerce Committee on March 23 where he will sit before more than 50 House members for the first time. This hearing is set to include topics regarding TikTok’s privacy practices, its impact on children, and TikTok’s relationship with the Chinese Communist Party. Since this hearing could be extremely aggressive given the bipartisan efforts to ban TikTok, BBIG stock could witness a strong run in the lead-up to this hearing.
With this in mind, the US government appears to be dead set on banning TikTok throughout the nation as the Biden administration continued to implement a TikTok ban on government devices – with federal agencies having 30 days to enforce this ban. If TikTok ends up getting banned in the US, this could be a major catalyst for BBIG stock that could help it rebound from its current dip. Based on this, bullish investors could find a profitable entry on BBIG at the current PPS in anticipation of more news regarding the potential TikTok ban.
BBIG Stock Options Flow
Currently, short interest is estimated to be 16.7% of the float and utilization is 100%
Using unusual whale’s options flow, it shows that call volume was 81% but bullish premiums were 58%. There was less activity from big whales but one sold their put with an $11 thousand premium. Currently, the most popular option chain is for calls with a $3.50 strike price and an expiry of May 27th. This option has 12,341 in volume and 20,082 open interest.
BBIG Stock Financials
Q1 Earnings
BBIG released its Q1 financials recently and reported solid progress in a number of key metrics. The company saw a $9 million increase in its revenues – a 349.7% increase from the quarter before. BBIG also reported cash, cash equivalents, and restricted cash of $210.8 million.
Meanwhile, administrative expenses increased to $26.8 million compared to $11.7 million in Q1 2021. Total other income and expenses in Q1 2022 were a net expense of $352.9 million compared to $51.5 million in Q1 of 2021.
In terms of assets, BBIG witnessed a 23% increase QoQ for a total of $500.6 million in assets. However, BBIG also increased its total liabilities from $271.4 million to $541.7 million as a result of a $429.1 million derivative liability. In total, BBIG reported a net loss of $372.9 million resulting from a loss on the issuance of warrants as well as a change in the fair value of warrant liability.
Convertible Debt
As the company is in need of liquidity to pursue more growth opportunities, BBIG sold 20 million Series A Warrants to an accredited investor which could be converted to 20 million shares for $9 per share. Since these warrants could have a major dilutive impact on the company’s shareholders, BBIG agreed with the note holders to adjust the purchase price. In this way, each Series A Warrant could be converted to 50% of BBIG stock. In light of this, BBIG is able to raise capital without having to dilute more shares.
Q2 Earnings
In Q2, BBIG reported $458.5 million in assets including $99.2 million in cash on hand. However, BBIG disclosed that it had $10 million in restricted cash and $5.5 million in unrestricted cash as of January 31, 2023. This steep decline is mainly due to a warrant holder exercising their right to exchange the warrants for cash payments of $.65 and $.36 per warrant. In this way, BBIG made cash payments of $33.8 million, $33 million, $115 thousand, and $65 million. Meanwhile, the company had $236.1 million in liabilities whereas only $78 million are current liabilities. However, it is worth noting that BBIG reported $94.3 million as a derivative liability.
As for revenues, BBIG reported $10.3 million compared to $685.1 thousand in Q2 2021. Meanwhile, operating costs increased $5.4 million to $31.1 million YoY. Despite this, BBIG reported a net profit of $135.4 million in Q2 compared to a net loss of $178.9 million in the previous year which could be attributed to the $173 million reported as a change in the fair value of warrant liability.
Media Sentiment
@Official_MrRic is extremely on BBIG stock’s future outlook in case TikTok is banned.
Technical Analysis
BBIG stock price is currently at $.4931 and the stock has a support near 0.4414. Meanwhile, the stock shows resistances near .5093, .6700, .7600, and .8992. While BBIG recently broke through the 50 MA, the stock failed to hold it as a support and is currently below the 50 MA. BBIG is also trading near its resistance. In this way, the stock could be poised to retest its support in the near term. Considering that the likelihood of a TikTok ban appears to be high, bullish investors could wait for a retest of the support to add shares in anticipation of more news regarding the potential TikTok ban.
Although the BBIG stock forecast could be bullish if TikTok is banned, accumulation is trending downwards. Similarly, the MACD recently turned bearish following a crossover. The RSI is holding at 45 indicating that BBIG has large room to run. With the stock trading below the 200 MA alongside the bearish accumulation and MACD, BBIG stock could be set to retest its support in the near future which would make it an attractive entry ahead of the potential TikTok ban. BBIG has an OS of 248.9 million and a float of 238 million.
BBIG Stock Forecast
In light of the company’s venture into several lucrative markets, long-term investors may see a profitable return on their investment as BBIG continues growing Lomotif. As the company intends to integrate AdRizer with Lomotif to monetize the TikTok competitor, BBIG could emerge as a leader in the digital media sphere thanks to its digital media ecosystem. With TikTok potentially getting banned in the US due to privacy breaches, Lomotif could become the leading short-form video content provider in the US in addition to its status in India. Based on this, BBIG stock could be well-positioned for significant growth in the long term.
On that note, TikTok appears to be close to getting banned in the US with the House and Senate set to vote on a bill that would provide President Biden with the ability to ban the platform throughout the nation. With the Biden administration giving federal agencies a 30-day period to enforce the TikTok ban from government devices, the short-video platform could very likely be banned if Biden has the power to ban it. In this way, Lomotif could emerge as the US leader in short-form content platforms thanks to its stature as a TikTok replacement.
Meanwhile, BBIG’s expansion into the published content sphere following its recent acquisition of the National Enquirer, the National Examiner, and Globe provides the company with additional revenue generation opportunities. Considering these tabloids’ popularity, BBIG could be on the right track to profitability. Given that the company intends to integrate these tabloids with its digital media ecosystem, BBIG could be poised to grow its revenues while reducing its costs in the future.
With BBIG finally posting its late Q2 financials and planning to post its Q3 report by March 8, the company appears to be on the right track to regain compliance with the NASDAQ requirements. Based on this, BBIG stock could soar especially if it continues to grow its revenues in the Q3 report. As the company is also planning to hold its annual shareholders’ meeting by March 31, many investors are bullish that BBIG stock could break past $1 soon to regain compliance with the minimum bid price rule.
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