investors@singingmachine.com www.singingmachine.com www.singingmachine.com/investors Fort Lauderdale, FL, May 23, 2024 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. ("Singing Machine") (NASDAQ: MICS) – the worldwide leader in consumer karaoke products, today announced its Executive Committee of the Board of Directors has authorized management to explore a range of potentially transformational corporate transactions. The primary purpose for this initiative is to explore transactions that can potentia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ________________________ Commission File Number: 001-41405 THE SINGING MACHINE COMPANY, INC. (Exact name of registrant as specified in its charter) | Delawa ...

Company Generates $29.2 Million in Sales on 9-Month Transition Year Fort Lauderdale, FL, April 16, 2024 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. ("Singing Machine") (NASDAQ: MICS) – the worldwide leader in consumer karaoke products, today announced its results of operations for the nine-month period ended December 31, 2023. The Company has historically reported on a March 31 fiscal year end and transitioned to a December 31 fiscal year end with the Transition Period Annual Report released today ...

The Singing Machine Company, Inc. (NASDAQ:MICS) Q2 2024 Results Conference Call November 21, 2023 10:00 AM ET Company Participants Gary Atkinson - CEO & Chairman Lionel Marquis - CFO Bernardo Melo - Chief Revenue Officer Operator Good morning, everyone, and welcome to Singing Machine's Second Quarter Fiscal 2024 Financial Results Earnings Call. My name is Natalie, and I will be your operator today. As a reminder, today's call is being recorded. We have a brief safe harbor and then we'll get started. This ca ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the periods ended September 30, 2023, and 2022 Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | Sep 30, 2023 (Unaudited) ($) | Mar 31, 2023 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $27,777,305 | $15,199,465 | | **Total Assets** | $32,583,312 | $16,648,597 | | **Total Current Liabilities** | $19,065,409 | $6,125,567 | | **Total Liabilities** | $22,905,368 | $6,317,552 | | **Total Shareholders' Equity** | $9,677,944 | $10,331,045 | Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended Sep 30, 2023 ($) | Three Months Ended Sep 30, 2022 ($) | Six Months Ended Sep 30, 2023 ($) | Six Months Ended Sep 30, 2022 ($) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $15,930,563 | $17,113,636 | $18,555,566 | $28,805,690 | | **Gross Profit** | $3,733,886 | $3,853,019 | $4,582,736 | $6,942,552 | | **Income (Loss) from Operations** | $105,950 | $584,651 | $(2,324,786) | $731,493 | | **Net Income (Loss)** | $97,535 | $296,467 | $(2,362,146) | $280,464 | | **Diluted EPS** | $0.02 | $0.08 | $(0.58) | $0.09 | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended) | Cash Flow Activity | Sep 30, 2023 ($) | Sep 30, 2022 ($) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(1,173,821) | $(3,580,205) | | **Net cash used in investing activities** | $(14,118) | $(87,801) | | **Net cash provided by financing activities** | $1,505,929 | $4,356,206 | | **Net change in cash** | $317,990 | $688,200 | | **Cash at end of period** | $3,212,564 | $2,978,683 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail recent corporate developments, liquidity, revenue breakdown, financing arrangements, and significant customer concentrations - On November 20, 2023, the company completed a **$2 million private placement** of common stock with two affiliates at **$0.91 per share**, raising net proceeds of approximately **$1.9 million**[22](index=22&type=chunk) - The company entered into a **15-year lease agreement** on August 23, 2023, for a new **10,000 sq. ft. karaoke venue** in New York City, signaling an expansion into the hospitality sector[23](index=23&type=chunk) - For the six months ended September 30, 2023, the company reported a **net loss of approximately $2.4 million** and used **$1.2 million in cash from operations**; management believes existing cash, private placement proceeds, and working capital are sufficient for the next twelve months[25](index=25&type=chunk)[26](index=26&type=chunk) Disaggregated Revenue by Product Line (Six Months Ended) | Product Line | Sep 30, 2023 ($) | Sep 30, 2022 ($) | | :--- | :--- | :--- | | Classic Karaoke Machines | $8,461,000 | $14,343,000 | | Microphones and Accessories | $1,885,000 | $5,110,000 | | Streaming Karaoke Machines | $7,840,000 | $7,748,000 | | SMC Kids Toys | $327,000 | $1,557,000 | | Licensed Products | $43,000 | $48,000 | | **Total Net Sales** | **$18,556,000** | **$28,806,000** | - On November 17, 2023, the company voluntarily terminated its asset-backed revolving credit facility with Fifth Third Financial Corporation due to non-compliance with a debt coverage financial covenant[37](index=37&type=chunk)[43](index=43&type=chunk) - For the six months ended September 30, 2023, three customers accounted for **38%, 20%, and 18% of net sales**, and as of the same date, two customers represented **44% and 28% of total accounts receivable**, indicating significant customer concentration risk[71](index=71&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, including sales decline, expense increases from a new hospitality segment, and liquidity, for the periods ended September 30, 2023 - The company announced a change in its fiscal year end from March 31st to December 31st, effective starting with the period ending December 31, 2023[84](index=84&type=chunk) - To support its new hospitality business segment, the company formed three new subsidiaries in July 2023: MICS Hospitality Holdings, Inc., MICS Hospitality Management, LLC, and MICS Nomad, LLC[87](index=87&type=chunk) [Results of Operations - Quarter Ended September 30, 2023 vs 2022](index=22&type=section&id=Results%20of%20Operations%20-%20Quarter%20Ended%20September%2030%2C%202023%20vs%202022) Q3 net sales decreased by **6.9%** to **$15.9 million** due to increased co-op incentives, while operating expenses rose **11.0%** from marketing and new hospitality segment costs Q2 Financial Comparison (Three Months Ended Sep 30) | Metric | 2023 ($) | 2022 ($) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Sales** | $15,931,000 | $17,114,000 | (6.9%) | | **Gross Profit** | $3,733,000 | $3,853,000 | (3.1%) | | **Operating Expenses** | $3,628,000 | $3,268,000 | 11.0% | - The decrease in net sales was primarily attributed to an estimated **$913,000 increase** in accrued co-op incentives for holiday promotions[90](index=90&type=chunk) - Operating expenses increased mainly due to a one-time **$200,000 marketing promotion** and expenses related to launching the new hospitality segment[93](index=93&type=chunk) [Results of Operations - Six Months Ended September 30, 2023 vs 2022](index=23&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20September%2030%2C%202023%20vs%202022) H1 net sales significantly decreased by **35.6%** to **$18.6 million** due to a prior-year one-time order and shifts in customer demand, while operating expenses rose **11.2%** from new hospitality segment launch costs H1 Financial Comparison (Six Months Ended Sep 30) | Metric | 2023 ($) | 2022 ($) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Sales** | $18,556,000 | $28,806,000 | (35.6%) | | **Gross Profit** | $4,583,000 | $6,943,000 | (34.0%) | | **Operating Expenses** | $6,907,000 | $6,211,000 | 11.2% | - The significant drop in net sales was attributed to a large, one-time **$3.14 million order** in the prior year's first quarter and a shift in buying demand from certain key customers[96](index=96&type=chunk) - The increase in operating expenses was primarily due to approximately **$575,000 in professional, legal, and rent expenses** for the launch of the Company's emerging hospitality segment[98](index=98&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, the company held **$3.2 million in cash** and **$5.5 million in positive working capital**, with management confident in sufficient liquidity for the next twelve months Liquidity Position as of September 30, 2023 | Metric | Amount ($) | | :--- | :--- | | Cash on hand | $3,213,000 | | Net loss (Six months ended) | $(2,362,000) | | Cash used in operations (Six months ended) | $(1,174,000) | | Positive working capital (excluding cash) | $5,500,000 | - Management expresses confidence that its cash on hand, funds from the recent Private Placement, and working capital will be adequate to meet liquidity requirements for at least the next twelve months[102](index=102&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure about market risk is not required for small reporting companies[104](index=104&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no significant changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[106](index=106&type=chunk) - There were no significant changes in internal control over financial reporting during the fiscal quarter ended September 30, 2023[107](index=107&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - The company is not currently a party to any legal proceedings that it believes will have a material adverse effect on its business[109](index=109&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure of risk factors is not required for small reporting companies in a Form 10-Q[110](index=110&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities were reported for the period - None reported for the period[111](index=111&type=chunk) [Defaults Upon Senior Securities](index=25&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None reported[112](index=112&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[113](index=113&type=chunk) [Other Information](index=25&type=section&id=Item%205.%20Other%20Information) No other information was reported for disclosure in this section - None reported[114](index=114&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a lease agreement, credit agreement amendment, and officer certifications - Key exhibits filed include: * Lease agreement for the MICS Nomad, LLC venue in New York * Waiver and Second Amendment to the Credit and Security Agreement * Certifications by the CEO and CFO as required by SEC rules[115](index=115&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 6301 NW 5th Way, Suite 2900, Fort Lauderdale FL 33309 (Address of principal executive offices) (954) 596-1000 (Registrant's telephone number, including area code) For the transition period from ...

Financial Data and Key Metrics Changes - Revenues for fiscal year 2023 were approximately $39.3 million, a decrease of approximately $8.2 million or 17.3% compared to $47.5 million for fiscal year 2022 [10] - Gross profit for fiscal 2023 was approximately $9.2 million, yielding a gross profit margin of 23.4%, compared to $10.8 million or 22.8% for fiscal 2022, indicating a slight increase in margin despite a decrease in profit [12] - Operating expenses increased to $12.9 million, representing a 20.6% increase from $10.7 million in the prior year [13] Business Line Data and Key Metrics Changes - The company experienced a broad-based decrease in sales across four out of five box retail partners, contributing to the overall revenue decline [10] - Co-op promotion incentives increased to $2.3 million or 6% of net sales, compared to approximately $1.7 million or 3.6% of net sales for the previous fiscal year [38] Market Data and Key Metrics Changes - The company maintained its shelf space in the toy department and expanded its offerings at Walmart, which will carry a total of 14 Singing Machine products [7] - The Canadian market is identified as a key growth opportunity for fiscal 2024 and beyond, with efforts to strengthen relationships with major retailers [33] Company Strategy and Development Direction - The company aims to accelerate revenue growth, improve profitability, and diversify revenue sources, focusing on the automotive and hospitality markets [34] - The transition to NASDAQ is viewed as a significant milestone that has allowed the company to raise capital on better terms [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the financial results but noted that the company adapted rapidly to the challenges posed by the lingering effects of COVID-19 and supply chain issues [20] - The management team is optimistic about the upcoming holiday season, expecting more repeat replenishment orders due to cleaner distribution channels [23][49] Other Important Information - The company successfully reduced its overall working capital investments by approximately $5.2 million during the year, focusing on inventory management [41] - Cash on hand as of March 31, 2023, was $2.9 million, an increase from $2.3 million the previous year [41] Q&A Session Summary Question: Was there anything about the holiday season that you were unprepared for? - Management noted that retailers were more conservative in their ordering patterns, which affected business operations [48][49] Question: How do you see the supply chains evolving? - Management indicated that container prices have significantly decreased, leading to cost savings in logistics [26] Question: Why is the company excited about the automotive opportunity? - The company sees a significant market potential in integrating karaoke solutions into vehicles, supported by interest from major automotive brands [53][66] Question: What are the prospects for the hospitality market? - Management highlighted the fragmented nature of the karaoke venue market and the opportunity to lead innovation in this space [55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ___________ Commission file number 001-41405 THE SINGING MACHINE COMPANY, INC. (Exact name of registrant as specified in its charter) Delaware 95-3795478 ...

The Singing Machine Company, Inc. (NASDAQ:MICS) Q3 2023 Earnings Conference Call February 21, 2023 10:00 AM ET Company Participants Brendan Hopkins - IR Gary Atkinson - CEO & Chairman Lionel Marquis - CFO Conference Call Participants Operator Good day, everyone, and welcome to today's Singing Machine’s Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask a question during the question-and-answer session. [Operator Instructions] Pl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarter ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______. Commission File Number -001-41405 THE SINGING MACHINE COMPANY, INC. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of ...