Shares of Vinco Ventures (NASDAQ:BBIG) stock opened lower by over 5% following a press release concerning the company’s earnings for the quarters ended June 30 and Sept. 30. Vinco announced that it “anticipates its imminent filing” for its Form 10-Q, or quarterly earnings report, for the quarter ended June 30. In addition, Vinco expects to file its Form 10-Q for the quarter that ended Sept. 8 by March 8.
This is welcome news for BBIG shareholders, as the digital media company last reported earnings for the quarter that ended on March 31. During that quarter, revenue tallied in at $11.5 million, up by 349.7% year-over-year (YOY). While revenue was up significantly, Vinco remained unprofitable, reporting a net loss of $372.9 million, equivalent to an earnings per share ( ) loss of $3.05. The company ended the quarter with $130.8 million in unrestricted cash.
Dear BBIG Stock Fans, Mark Your Calendars for March 8
The lack of earnings reports has also caught the attention of the Nasdaq. In letters dated Aug. 19 and Nov. 17, the exchange notified Vinco that it did not satisfy listing and filing requirements due to the delinquent earnings reports. Nasdaq provided the company with an exception until Jan. 31. On Jan. 26, Vinco requested more time to complete the filings, which was granted. The deadline was subsequently extended until Feb. 13.
However, Feb. 13 is far past us, and no earnings report is in sight. This led the Nasdaq to state that the “Company did not meet the terms of the exception.” Vinco has appealed this determination to a Hearings Panel.
Now, all investors can do is wait and trust that Vinco will imminently file its earnings report for the quarter that ended June 30. In addition, it’s unclear how these results will play out. Vinco hasn’t issued a Form 10-Q in almost a year, and in that time, the company has vastly changed through acquisitions, management shakeups, and macroeconomic factors. In addition, zero analysts provide coverage of BBIG. This is likely due to the stock’s penny stock status listing, delinquent earnings, and the possibility of being delisted.
Meanwhile, Vinco is unlikely to be profitable. Shares of BBIG will likely explode higher if the company announces profitability.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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 InvestorPlace.com Publishing Guidelines.