Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Singing Machine Reports $17.1 Million in Second Quarter Revenue; 23% Increase in Year-to-Date Sales By: The Singing Machine Company, Inc. via GlobeNewswire November 14, 2022 at 08:00 AM EST Fort Lauderdale, FL, Nov. 14, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (NASDAQ: MICS) – the worldwide leader in consumer karaoke products – today announced its second quarter financial results for the three months ended September 30, 2022. Second Quarter Highlights: Net sales for the quarter of $17.1 million; fiscal year-to-date revenue of $28.8 million (an increase of 23% over the same period in the prior year).Gross profit increased by approximately $0.6 million to $3.9 million (representing a 23% gross margin) compared to $3.3 million (or 19% gross margin) in the prior year (an overall increase of 4% compared to the prior year same period). The improvement was in part due to lower inbound logistics and transportation expenses.Income from Operations of approximately $0.6 million for the quarter; the Company continues to demonstrate ability to produce profitable quarters.Strengthened balance sheet with a successful $15 million senior secured line of credit refinancing with Fifth Third Bank on October 14, 2022.Fully diluted EPS of $0.08 for the quarter and $0.11 for the year-to-date period. Management Commentary: Gary Atkinson, Singing Machine CEO, commented, “This was a very strong quarter for our Company. We are very pleased to share our results of operations, particularly in a challenging overall economic environment.” “We have aggressively sought to sell product into our best retail partners throughout the year, and that was a key factor for our $17 million in top line sales for the quarter which helped contribute to the 23% growth in year-to-date net sales and almost $29 million in net sales for the fiscal-year-to-date period. We’re proud of these results and our ability to continue to perform and deliver despite some of the overall headwinds facing the retail industry today.” “More importantly, we were able to accomplish our goal at the beginning of the year which was to improve gross margins by over 400-basis point compared to the same quarter last year. To overcome last year’s supply chain challenges, our team worked hard this year to shift a majority of our business to FOB-China thereby improving the timing and efficiency of shipments to avoid any potential supply-chain disruptions and to ensure our retail customers remained in-stock on key karaoke products.” “As we enter our holiday quarter, the market remains volatile and challenging with generally elevated levels of inventory present throughout the entire consumer products market. However, through our long-standing partnerships at retail and our commitment to innovation, we firmly believe we are well-positioned to remain the market leader today and well into the future.” “We continue to look for and invest into new serviceable markets and business verticals within the karaoke category that are currently untapped in the U.S. market. We believe there are a number of significant growth opportunities where we can be very competitive while driving new sales growth at compelling margins,” concluded Mr. Atkinson. Earnings Call Information: The Company will host a conference call today, Monday, November 14, 2021, beginning at 5:00 PM Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial (800) 343-4849 and use conference ID: MICS. An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: www.singingmachine.com/investors. About The Singing Machine Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 70,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com. Investor Relations Contact:Brendan Hopkins(407) 645-5295investors@singingmachine.comwww.singingmachine.comwww.singingmachine.com/investors Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "may", "could", "expects", "projects," "intends", "plans", "believes", "predicts", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements. The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2022 March 31, 2022 (unaudited) Assets Current Assets Cash $2,978,683 $2,290,483 Accounts receivable, net of allowances of $277,953 and $122,550, respectively 10,640,685 2,785,038 Due from Crestmark Bank 1,076,988 100,822 Accounts receivable related party - Stingray Group, Inc. 81,665 152,212 Inventories, net 16,022,436 14,161,636 Prepaid expenses and other current assets 158,238 344,409 Deferred financing costs - 7,813 Total Current Assets 30,958,695 19,842,413 Property and equipment, net 532,505 565,094 Deferred tax assets 812,478 892,559 Operating Leases - right of use assets 862,279 1,279,347 Other non-current assets 193,841 86,441 Total Assets $33,359,798 $22,665,854 Liabilities and Shareholders’ Equity Current Liabilities Accounts payable $10,133,744 $5,391,265 Accrued expenses 2,544,287 1,732,355 Revolving line of credit - Iron Horse Credit 2,500,000 2,500,000 Refunds due to customers 93,925 97,968 Reserve for sales returns 1,690,606 990,000 Current portion of finance leases 7,988 7,605 Current portion of installment notes 77,479 74,300 Current portion of operating lease liabilities 848,723 876,259 Subordinated note payable - Starlight Marketing Development, Ltd. 352,659 352,659 Total Current Liabilities 18,249,411 12,022,411 Finance leases, net of current portion 6,528 10,620 Installment notes, net of current portion 99,098 138,649 Operating lease liabilities, net of current portion 60,374 457,750 Total Liabilities 18,415,411 12,629,430 Commitments and Contingencies Shareholders’ Equity Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding - - Common stock $0.01 par value;100,000,000 shares authorized; 3,108,814 and 1,221,209 shares issued and outstanding, respectively 31,088 12,212 Additional paid-in capital 29,511,317 24,902,694 Accumulated deficit (14,598,018) (14,878,482)Total Shareholders’ Equity 14,944,387 10,036,424 Total Liabilities and Shareholders’ Equity $33,359,798 $22,665,854 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited) For the Three Months Ended For the Six Months Ended September 30,2022 September 30,2021 September 30,2022 September 30,2021 Net Sales $17,113,636 $17,368,973 $28,805,690 $23,434,623 Cost of Goods Sold 13,149,667 14,041,669 21,661,191 18,529,449 Gross Profit 3,963,969 3,327,304 7,144,499 4,905,174 Operating Expenses Selling expenses 899,590 733,485 1,504,787 1,311,467 General and administrative expenses 2,417,405 1,776,997 4,787,829 3,198,349 Depreciation 62,323 66,809 120,390 135,080 Total Operating Expenses 3,379,318 2,577,291 6,413,006 4,644,896 Income from Operations 584,651 750,013 731,493 260,278 Other (Expenses) Income Gain - related party - - - 11,236 Gain from Payroll Protection Plan loan forgiveness - - - 448,242 Gain from settlement of accounts payable - 236,472 - 236,472 Interest expense (185,827) (110,864) (345,940) (210,393)Finance costs - (9,375) (7,813) (26,297)Total Other (Expenses) Income, net (185,827) 116,233 (353,753) 459,260 Income Before Income Tax Provision 398,824 866,246 377,740 719,538 Income Tax Provision (102,357) (173,873) (97,276) (145,778) Net Income $296,467 $692,373 $280,464 $573,760 Net Income per Common Share Basic $0.10 $0.43 $0.11 $0.40 Diluted $0.08 $0.43 $0.09 $0.39 Weighted Average Common and Common Equivalent Shares: Basic 3,071,131 1,593,929 2,484,660 1,448,603 Diluted 3,610,188 1,605,134 2,961,631 1,460,967 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) For the Six Months Ended September 30, 2022 September 30, 2021 Cash flows from operating activities Net Income $280,464 $573,760 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 120,390 135,080 Amortization of deferred financing costs 7,813 26,297 Change in inventory reserve (93,447) 53,890 Change in allowance for bad debts 155,403 118,321 Loss from disposal of property and equipment - 4,394 Stock based compensation 231,213 34,727 Change in net deferred tax assets 80,081 145,778 Paycheck Protection Plan loan forgiveness - (448,242)Gain - related party - (11,236)Gain from extinguishment of accounts payable - (236,472)Changes in operating assets and liabilities: Accounts receivable (8,011,050) (9,409,973)Due from Crestmark Bank (976,166) 4,557,120 Accounts receivable - related parties 70,547 (70,880)Inventories (1,767,353) (13,721,821)Prepaid expenses and other current assets 186,171 23,155 Other non-current assets (107,400) 50,262 Accounts payable 4,742,479 16,409,171 Accrued expenses 811,932 381,213 Customer deposits - (53,249)Refunds due to customers (4,043) (46,686)Reserve for sales returns 700,606 903,731 Operating lease liabilities, net of operating leases - right of use assets (7,844) 5,655 Net cash used in operating activities (3,580,204) (576,005)Cash flows from investing activities Purchase of property and equipment (87,801) (77,599)Net cash used in investing activities (87,801) (77,599)Cash flows from financing activities Proceeds from Issuance of stock - net of transaction expenses 3,362,750 9,000,580 Payment of redemption and retirement of treasury stock - (7,162,452)Net proceeds from revolving lines of credit - 1,977,006 Payment of deferred financing charges - (37,501)Payments on installment notes (36,372) (33,451)Proceeds from exercise of stock options - 4,800 Proceeds from exercise of pre-funded warrants 168,334 - Proceeds from exercise of common warrants 865,202 - Payment on subordinated note payable (150,000)Payments on finance leases (3,709) (4,440)Net cash provided by financing activities 4,356,205 3,594,542 Net change in cash 688,200 2,940,938 Cash at beginning of year 2,290,483 396,579 Cash at end of period $2,978,683 $3,337,517 Supplemental disclosures of cash flow information: Cash paid for interest $331,225 $249,734 Equipment purchased under capital lease $- $23,651 Issuance of common stock and warrants for stock issuance expenses $- $547,838 Operating leases - right of use assets and lease liabilities at inception of lease $- $16,364 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Singing Machine Reports $17.1 Million in Second Quarter Revenue; 23% Increase in Year-to-Date Sales By: The Singing Machine Company, Inc. via GlobeNewswire November 14, 2022 at 08:00 AM EST Fort Lauderdale, FL, Nov. 14, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (NASDAQ: MICS) – the worldwide leader in consumer karaoke products – today announced its second quarter financial results for the three months ended September 30, 2022. Second Quarter Highlights: Net sales for the quarter of $17.1 million; fiscal year-to-date revenue of $28.8 million (an increase of 23% over the same period in the prior year).Gross profit increased by approximately $0.6 million to $3.9 million (representing a 23% gross margin) compared to $3.3 million (or 19% gross margin) in the prior year (an overall increase of 4% compared to the prior year same period). The improvement was in part due to lower inbound logistics and transportation expenses.Income from Operations of approximately $0.6 million for the quarter; the Company continues to demonstrate ability to produce profitable quarters.Strengthened balance sheet with a successful $15 million senior secured line of credit refinancing with Fifth Third Bank on October 14, 2022.Fully diluted EPS of $0.08 for the quarter and $0.11 for the year-to-date period. Management Commentary: Gary Atkinson, Singing Machine CEO, commented, “This was a very strong quarter for our Company. We are very pleased to share our results of operations, particularly in a challenging overall economic environment.” “We have aggressively sought to sell product into our best retail partners throughout the year, and that was a key factor for our $17 million in top line sales for the quarter which helped contribute to the 23% growth in year-to-date net sales and almost $29 million in net sales for the fiscal-year-to-date period. We’re proud of these results and our ability to continue to perform and deliver despite some of the overall headwinds facing the retail industry today.” “More importantly, we were able to accomplish our goal at the beginning of the year which was to improve gross margins by over 400-basis point compared to the same quarter last year. To overcome last year’s supply chain challenges, our team worked hard this year to shift a majority of our business to FOB-China thereby improving the timing and efficiency of shipments to avoid any potential supply-chain disruptions and to ensure our retail customers remained in-stock on key karaoke products.” “As we enter our holiday quarter, the market remains volatile and challenging with generally elevated levels of inventory present throughout the entire consumer products market. However, through our long-standing partnerships at retail and our commitment to innovation, we firmly believe we are well-positioned to remain the market leader today and well into the future.” “We continue to look for and invest into new serviceable markets and business verticals within the karaoke category that are currently untapped in the U.S. market. We believe there are a number of significant growth opportunities where we can be very competitive while driving new sales growth at compelling margins,” concluded Mr. Atkinson. Earnings Call Information: The Company will host a conference call today, Monday, November 14, 2021, beginning at 5:00 PM Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial (800) 343-4849 and use conference ID: MICS. An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: www.singingmachine.com/investors. About The Singing Machine Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 70,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com. Investor Relations Contact:Brendan Hopkins(407) 645-5295investors@singingmachine.comwww.singingmachine.comwww.singingmachine.com/investors Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "may", "could", "expects", "projects," "intends", "plans", "believes", "predicts", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements. The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2022 March 31, 2022 (unaudited) Assets Current Assets Cash $2,978,683 $2,290,483 Accounts receivable, net of allowances of $277,953 and $122,550, respectively 10,640,685 2,785,038 Due from Crestmark Bank 1,076,988 100,822 Accounts receivable related party - Stingray Group, Inc. 81,665 152,212 Inventories, net 16,022,436 14,161,636 Prepaid expenses and other current assets 158,238 344,409 Deferred financing costs - 7,813 Total Current Assets 30,958,695 19,842,413 Property and equipment, net 532,505 565,094 Deferred tax assets 812,478 892,559 Operating Leases - right of use assets 862,279 1,279,347 Other non-current assets 193,841 86,441 Total Assets $33,359,798 $22,665,854 Liabilities and Shareholders’ Equity Current Liabilities Accounts payable $10,133,744 $5,391,265 Accrued expenses 2,544,287 1,732,355 Revolving line of credit - Iron Horse Credit 2,500,000 2,500,000 Refunds due to customers 93,925 97,968 Reserve for sales returns 1,690,606 990,000 Current portion of finance leases 7,988 7,605 Current portion of installment notes 77,479 74,300 Current portion of operating lease liabilities 848,723 876,259 Subordinated note payable - Starlight Marketing Development, Ltd. 352,659 352,659 Total Current Liabilities 18,249,411 12,022,411 Finance leases, net of current portion 6,528 10,620 Installment notes, net of current portion 99,098 138,649 Operating lease liabilities, net of current portion 60,374 457,750 Total Liabilities 18,415,411 12,629,430 Commitments and Contingencies Shareholders’ Equity Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding - - Common stock $0.01 par value;100,000,000 shares authorized; 3,108,814 and 1,221,209 shares issued and outstanding, respectively 31,088 12,212 Additional paid-in capital 29,511,317 24,902,694 Accumulated deficit (14,598,018) (14,878,482)Total Shareholders’ Equity 14,944,387 10,036,424 Total Liabilities and Shareholders’ Equity $33,359,798 $22,665,854 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited) For the Three Months Ended For the Six Months Ended September 30,2022 September 30,2021 September 30,2022 September 30,2021 Net Sales $17,113,636 $17,368,973 $28,805,690 $23,434,623 Cost of Goods Sold 13,149,667 14,041,669 21,661,191 18,529,449 Gross Profit 3,963,969 3,327,304 7,144,499 4,905,174 Operating Expenses Selling expenses 899,590 733,485 1,504,787 1,311,467 General and administrative expenses 2,417,405 1,776,997 4,787,829 3,198,349 Depreciation 62,323 66,809 120,390 135,080 Total Operating Expenses 3,379,318 2,577,291 6,413,006 4,644,896 Income from Operations 584,651 750,013 731,493 260,278 Other (Expenses) Income Gain - related party - - - 11,236 Gain from Payroll Protection Plan loan forgiveness - - - 448,242 Gain from settlement of accounts payable - 236,472 - 236,472 Interest expense (185,827) (110,864) (345,940) (210,393)Finance costs - (9,375) (7,813) (26,297)Total Other (Expenses) Income, net (185,827) 116,233 (353,753) 459,260 Income Before Income Tax Provision 398,824 866,246 377,740 719,538 Income Tax Provision (102,357) (173,873) (97,276) (145,778) Net Income $296,467 $692,373 $280,464 $573,760 Net Income per Common Share Basic $0.10 $0.43 $0.11 $0.40 Diluted $0.08 $0.43 $0.09 $0.39 Weighted Average Common and Common Equivalent Shares: Basic 3,071,131 1,593,929 2,484,660 1,448,603 Diluted 3,610,188 1,605,134 2,961,631 1,460,967 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) For the Six Months Ended September 30, 2022 September 30, 2021 Cash flows from operating activities Net Income $280,464 $573,760 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 120,390 135,080 Amortization of deferred financing costs 7,813 26,297 Change in inventory reserve (93,447) 53,890 Change in allowance for bad debts 155,403 118,321 Loss from disposal of property and equipment - 4,394 Stock based compensation 231,213 34,727 Change in net deferred tax assets 80,081 145,778 Paycheck Protection Plan loan forgiveness - (448,242)Gain - related party - (11,236)Gain from extinguishment of accounts payable - (236,472)Changes in operating assets and liabilities: Accounts receivable (8,011,050) (9,409,973)Due from Crestmark Bank (976,166) 4,557,120 Accounts receivable - related parties 70,547 (70,880)Inventories (1,767,353) (13,721,821)Prepaid expenses and other current assets 186,171 23,155 Other non-current assets (107,400) 50,262 Accounts payable 4,742,479 16,409,171 Accrued expenses 811,932 381,213 Customer deposits - (53,249)Refunds due to customers (4,043) (46,686)Reserve for sales returns 700,606 903,731 Operating lease liabilities, net of operating leases - right of use assets (7,844) 5,655 Net cash used in operating activities (3,580,204) (576,005)Cash flows from investing activities Purchase of property and equipment (87,801) (77,599)Net cash used in investing activities (87,801) (77,599)Cash flows from financing activities Proceeds from Issuance of stock - net of transaction expenses 3,362,750 9,000,580 Payment of redemption and retirement of treasury stock - (7,162,452)Net proceeds from revolving lines of credit - 1,977,006 Payment of deferred financing charges - (37,501)Payments on installment notes (36,372) (33,451)Proceeds from exercise of stock options - 4,800 Proceeds from exercise of pre-funded warrants 168,334 - Proceeds from exercise of common warrants 865,202 - Payment on subordinated note payable (150,000)Payments on finance leases (3,709) (4,440)Net cash provided by financing activities 4,356,205 3,594,542 Net change in cash 688,200 2,940,938 Cash at beginning of year 2,290,483 396,579 Cash at end of period $2,978,683 $3,337,517 Supplemental disclosures of cash flow information: Cash paid for interest $331,225 $249,734 Equipment purchased under capital lease $- $23,651 Issuance of common stock and warrants for stock issuance expenses $- $547,838 Operating leases - right of use assets and lease liabilities at inception of lease $- $16,364
Fort Lauderdale, FL, Nov. 14, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (NASDAQ: MICS) – the worldwide leader in consumer karaoke products – today announced its second quarter financial results for the three months ended September 30, 2022. Second Quarter Highlights: Net sales for the quarter of $17.1 million; fiscal year-to-date revenue of $28.8 million (an increase of 23% over the same period in the prior year).Gross profit increased by approximately $0.6 million to $3.9 million (representing a 23% gross margin) compared to $3.3 million (or 19% gross margin) in the prior year (an overall increase of 4% compared to the prior year same period). The improvement was in part due to lower inbound logistics and transportation expenses.Income from Operations of approximately $0.6 million for the quarter; the Company continues to demonstrate ability to produce profitable quarters.Strengthened balance sheet with a successful $15 million senior secured line of credit refinancing with Fifth Third Bank on October 14, 2022.Fully diluted EPS of $0.08 for the quarter and $0.11 for the year-to-date period. Management Commentary: Gary Atkinson, Singing Machine CEO, commented, “This was a very strong quarter for our Company. We are very pleased to share our results of operations, particularly in a challenging overall economic environment.” “We have aggressively sought to sell product into our best retail partners throughout the year, and that was a key factor for our $17 million in top line sales for the quarter which helped contribute to the 23% growth in year-to-date net sales and almost $29 million in net sales for the fiscal-year-to-date period. We’re proud of these results and our ability to continue to perform and deliver despite some of the overall headwinds facing the retail industry today.” “More importantly, we were able to accomplish our goal at the beginning of the year which was to improve gross margins by over 400-basis point compared to the same quarter last year. To overcome last year’s supply chain challenges, our team worked hard this year to shift a majority of our business to FOB-China thereby improving the timing and efficiency of shipments to avoid any potential supply-chain disruptions and to ensure our retail customers remained in-stock on key karaoke products.” “As we enter our holiday quarter, the market remains volatile and challenging with generally elevated levels of inventory present throughout the entire consumer products market. However, through our long-standing partnerships at retail and our commitment to innovation, we firmly believe we are well-positioned to remain the market leader today and well into the future.” “We continue to look for and invest into new serviceable markets and business verticals within the karaoke category that are currently untapped in the U.S. market. We believe there are a number of significant growth opportunities where we can be very competitive while driving new sales growth at compelling margins,” concluded Mr. Atkinson. Earnings Call Information: The Company will host a conference call today, Monday, November 14, 2021, beginning at 5:00 PM Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial (800) 343-4849 and use conference ID: MICS. An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: www.singingmachine.com/investors. About The Singing Machine Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 70,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com. Investor Relations Contact:Brendan Hopkins(407) 645-5295investors@singingmachine.comwww.singingmachine.comwww.singingmachine.com/investors Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "may", "could", "expects", "projects," "intends", "plans", "believes", "predicts", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission. The forward-looking statements are applicable only as of the date on which they are made, and the Company does not assume any obligation to update any forward-looking statements. The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2022 March 31, 2022 (unaudited) Assets Current Assets Cash $2,978,683 $2,290,483 Accounts receivable, net of allowances of $277,953 and $122,550, respectively 10,640,685 2,785,038 Due from Crestmark Bank 1,076,988 100,822 Accounts receivable related party - Stingray Group, Inc. 81,665 152,212 Inventories, net 16,022,436 14,161,636 Prepaid expenses and other current assets 158,238 344,409 Deferred financing costs - 7,813 Total Current Assets 30,958,695 19,842,413 Property and equipment, net 532,505 565,094 Deferred tax assets 812,478 892,559 Operating Leases - right of use assets 862,279 1,279,347 Other non-current assets 193,841 86,441 Total Assets $33,359,798 $22,665,854 Liabilities and Shareholders’ Equity Current Liabilities Accounts payable $10,133,744 $5,391,265 Accrued expenses 2,544,287 1,732,355 Revolving line of credit - Iron Horse Credit 2,500,000 2,500,000 Refunds due to customers 93,925 97,968 Reserve for sales returns 1,690,606 990,000 Current portion of finance leases 7,988 7,605 Current portion of installment notes 77,479 74,300 Current portion of operating lease liabilities 848,723 876,259 Subordinated note payable - Starlight Marketing Development, Ltd. 352,659 352,659 Total Current Liabilities 18,249,411 12,022,411 Finance leases, net of current portion 6,528 10,620 Installment notes, net of current portion 99,098 138,649 Operating lease liabilities, net of current portion 60,374 457,750 Total Liabilities 18,415,411 12,629,430 Commitments and Contingencies Shareholders’ Equity Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding - - Common stock $0.01 par value;100,000,000 shares authorized; 3,108,814 and 1,221,209 shares issued and outstanding, respectively 31,088 12,212 Additional paid-in capital 29,511,317 24,902,694 Accumulated deficit (14,598,018) (14,878,482)Total Shareholders’ Equity 14,944,387 10,036,424 Total Liabilities and Shareholders’ Equity $33,359,798 $22,665,854 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited) For the Three Months Ended For the Six Months Ended September 30,2022 September 30,2021 September 30,2022 September 30,2021 Net Sales $17,113,636 $17,368,973 $28,805,690 $23,434,623 Cost of Goods Sold 13,149,667 14,041,669 21,661,191 18,529,449 Gross Profit 3,963,969 3,327,304 7,144,499 4,905,174 Operating Expenses Selling expenses 899,590 733,485 1,504,787 1,311,467 General and administrative expenses 2,417,405 1,776,997 4,787,829 3,198,349 Depreciation 62,323 66,809 120,390 135,080 Total Operating Expenses 3,379,318 2,577,291 6,413,006 4,644,896 Income from Operations 584,651 750,013 731,493 260,278 Other (Expenses) Income Gain - related party - - - 11,236 Gain from Payroll Protection Plan loan forgiveness - - - 448,242 Gain from settlement of accounts payable - 236,472 - 236,472 Interest expense (185,827) (110,864) (345,940) (210,393)Finance costs - (9,375) (7,813) (26,297)Total Other (Expenses) Income, net (185,827) 116,233 (353,753) 459,260 Income Before Income Tax Provision 398,824 866,246 377,740 719,538 Income Tax Provision (102,357) (173,873) (97,276) (145,778) Net Income $296,467 $692,373 $280,464 $573,760 Net Income per Common Share Basic $0.10 $0.43 $0.11 $0.40 Diluted $0.08 $0.43 $0.09 $0.39 Weighted Average Common and Common Equivalent Shares: Basic 3,071,131 1,593,929 2,484,660 1,448,603 Diluted 3,610,188 1,605,134 2,961,631 1,460,967 The Singing Machine Company, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) For the Six Months Ended September 30, 2022 September 30, 2021 Cash flows from operating activities Net Income $280,464 $573,760 Adjustments to reconcile net income to net cash used in operating activities: Depreciation 120,390 135,080 Amortization of deferred financing costs 7,813 26,297 Change in inventory reserve (93,447) 53,890 Change in allowance for bad debts 155,403 118,321 Loss from disposal of property and equipment - 4,394 Stock based compensation 231,213 34,727 Change in net deferred tax assets 80,081 145,778 Paycheck Protection Plan loan forgiveness - (448,242)Gain - related party - (11,236)Gain from extinguishment of accounts payable - (236,472)Changes in operating assets and liabilities: Accounts receivable (8,011,050) (9,409,973)Due from Crestmark Bank (976,166) 4,557,120 Accounts receivable - related parties 70,547 (70,880)Inventories (1,767,353) (13,721,821)Prepaid expenses and other current assets 186,171 23,155 Other non-current assets (107,400) 50,262 Accounts payable 4,742,479 16,409,171 Accrued expenses 811,932 381,213 Customer deposits - (53,249)Refunds due to customers (4,043) (46,686)Reserve for sales returns 700,606 903,731 Operating lease liabilities, net of operating leases - right of use assets (7,844) 5,655 Net cash used in operating activities (3,580,204) (576,005)Cash flows from investing activities Purchase of property and equipment (87,801) (77,599)Net cash used in investing activities (87,801) (77,599)Cash flows from financing activities Proceeds from Issuance of stock - net of transaction expenses 3,362,750 9,000,580 Payment of redemption and retirement of treasury stock - (7,162,452)Net proceeds from revolving lines of credit - 1,977,006 Payment of deferred financing charges - (37,501)Payments on installment notes (36,372) (33,451)Proceeds from exercise of stock options - 4,800 Proceeds from exercise of pre-funded warrants 168,334 - Proceeds from exercise of common warrants 865,202 - Payment on subordinated note payable (150,000)Payments on finance leases (3,709) (4,440)Net cash provided by financing activities 4,356,205 3,594,542 Net change in cash 688,200 2,940,938 Cash at beginning of year 2,290,483 396,579 Cash at end of period $2,978,683 $3,337,517 Supplemental disclosures of cash flow information: Cash paid for interest $331,225 $249,734 Equipment purchased under capital lease $- $23,651 Issuance of common stock and warrants for stock issuance expenses $- $547,838 Operating leases - right of use assets and lease liabilities at inception of lease $- $16,364