BBIG Stock Alert: Why Did Vinco Ventures Receive Another Deficiency Notice?

  • Vinco Ventures (BBIG) has not yet submitted its earnings for the quarter ended Sept. 30.
  • This has drawn the ire of the Nasdaq, who issued the company a deficiency notice.
  • Shares of BBIG stock are down by more than 50% year-to-date.
BBIG stock - BBIG Stock Alert: Why Did Vinco Ventures Receive Another Deficiency Notice?

Source: / Postmodern Studio

Vinco Ventures (NASDAQ:BBIG) stock is in the spotlight after the company announced that it had received a deficiency notice from the Nasdaq regarding a late quarterly report, also known as a Form 10-Q, for the quarter ended Sept. 30. The deadline for the submission was Nov. 14.

In fact, Vinco hasn’t even submitted its Form 10-Q for the quarter ended June 30, which had a deadline of Aug. 22. The company had 60 days after the notice, or until Oct. 17, to submit a remediation plan with Nasdaq, which it did.

“The Vinco leadership team is working tirelessly to regain compliance with the Nasdaq Exchange as fast as possible,” said CEO Ross Miller. “The quick acceptance from Nasdaq of our remediation plan that was submitted on October 17th is key to our progress as we diligently work through Vinco’s financials and quarterly filing.”

BBIG Stock: Where are Vinco Ventures’ Earnings?

Now, Vinco has until Jan. 30 of 2023 to submit its earnings for the quarter ended June 30. In a press release released today, the company stated it had submitted a plan of compliance to Nasdaq to file both delinquent 10-Qs by Jan. 30. Vinco will file another updated plan to the Nasdaq confirming its submission timetable by Dec. 19.

The inability for the company to file its quarterly earnings casts substantial doubt on BBIG stock. The delay conveys a picture of an unruly and unreliable management team.

During Q1 of this year, Vinco reported revenue of $11.5 million, up 349.7% year-over-year (YOY). This was largely driven by the acquisition of AdRizer, which focuses on artificial intelligence automation to drive “digital advertising analytics and programmatic media buying.” Vinco purchased the company for $38 million in cash and up to 10 million shares of BBIG common stock issuable on Jan. 1, 2024.

Meanwhile, Vinco remains massively unprofitable, tallying in a Q1 net loss of $372.9 million, equivalent to an earnings per share (EPS) loss of $3.05. That’s down from Q1 of 2021’s net loss of $62.5 million. The company attributed the massive loss to “warrant accounting requirements,” which made up 87% of the loss.

Since Q1, investors have been kept in the dark on company financials. If all goes well, investors should receive a much-needed update by Jan. 30.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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