Singing Machine Co Inc Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Singing Machine Co Inc filed its Q1 2024 10-Q report, detailing financial activities and key agreements.</b>

AI Summary

SINGING MACHINE CO INC (RIME) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. The company filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of the fiscal year. Key dates mentioned include November 20, 2023, for a private placement and August 23, 2023, for a lease agreement. The company's business address is 6301 NW 5TH WAY, STE 2900, Fort Lauderdale, FL 33309. The filing references a revolving credit facility with amendments in August 2023.

Why It Matters

For investors and stakeholders tracking SINGING MACHINE CO INC, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Singing Machine Co Inc. Understanding the details of this 10-Q is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — SINGING MACHINE CO INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial distress indicators or major negative events.

Analyst Insight

Monitor future filings for revenue trends and debt management strategies following the reported period.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-15 — Filing Date (FILED AS OF DATE)
• 2023-11-20 — Private Placement Date (us-gaap:PrivatePlacementMember)
• 2023-08-23 — Lease Agreement Date (MICS:LeaseAgreementMember)

Key Players & Entities

• SINGING MACHINE CO INC (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-15 (date) — FILED AS OF DATE
• 6301 NW 5TH WAY, STE 2900 (address) — BUSINESS ADDRESS
• FORT LAUDERDALE (city) — BUSINESS ADDRESS
• FL (state) — BUSINESS ADDRESS
• 33309 (zip_code) — BUSINESS ADDRESS
• 2023-11-20 (date) — PrivatePlacementMember

FAQ

Industry Context

Singing Machine Co Inc operates in the consumer electronics and entertainment sector, specifically focusing on karaoke and audio systems.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management discussion.
2. Analyze any disclosed risk factors and their potential impact on the company.
3. Track future SEC filings for changes in financial performance and strategic initiatives.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-15: Filing Date — Date the 10-Q report was officially submitted to the SEC.
• 2023-11-20: Private Placement — Indicates a specific financial transaction occurred on this date.
• 2023-08-23: Lease Agreement — Marks the date of a significant lease agreement.

Year-Over-Year Comparison

This filing represents the most recent quarterly update for Singing Machine Co Inc, providing current financial information as of March 31, 2024.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share MICS NASDAQ Ca
• $10,553 — rent on the extension is approximately $10,553 per month subject to a 3% annual adjust

Filing Documents

• form10-q.htm (10-Q) — 506KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 5KB
• 0001493152-24-020033.txt (&nbsp;) — 3323KB
• mics-20240331.xsd (EX-101.SCH) — 31KB
• mics-20240331_cal.xml (EX-101.CAL) — 50KB
• mics-20240331_def.xml (EX-101.DEF) — 108KB
• mics-20240331_lab.xml (EX-101.LAB) — 293KB
• mics-20240331_pre.xml (EX-101.PRE) — 220KB
• form10-q_htm.xml (XML) — 300KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 22

SIGNATURES

SIGNATURES 23 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The Singing Machine Company, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (Unaudited) Assets Current Assets Cash $ 4,125,000 $ 6,703,000 Accounts receivable, net of allowances of $ 275,000 and $ 174,000 , respectively 3,305,000 7,308,000 Accounts receivable related parties 133,000 269,000 Accounts receivable 133,000 269,000 Inventory 6,493,000 6,871,000 Returns asset 1,262,000 1,919,000 Prepaid expenses and other current assets 214,000 136,000 Total Current Assets 15,532,000 23,206,000 Property and equipment, net 352,000 404,000 Operating leases - right of use assets 3,841,000 3,926,000 Other non-current assets 179,000 179,000 Total Assets $ 19,904,000 $ 27,715,000 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 3,947,000 $ 7,616,000 Accrued expenses 2,315,000 2,614,000 Refund due to customer 1,443,000 1,743,000 Customer prepayments 408,000 687,000 Reserve for sales returns 2,419,000 3,390,000 Other current liabilities 58,000 75,000 Current portion of operating lease liabilities 55,000 84,000 Total Current Liabilities 10,645,000 16,209,000 Other liabilities, net of current portion - 3,000 Operating lease liabilities, net of current portion 4,029,000 3,925,000 Total Liabilities 14,674,000 20,137,000 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; 6,418,061 issued and outstanding at March 31, 2024 and December 31, 2023, respectively 64,000 64,000 Additional paid-in capital 33,448,000 33,429,000 Accumulated deficit ( 28,282,000 ) ( 25,915,000 ) Total Shareholders' Equity 5,230,000 7,578,000 Total Liabilities and Shareholders' Equity $

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) NOTE 7 – OPERATING LEASES At the time of this filing, the Company has operating lease agreements for offices in Florida and Hong Kong and a retail location in New York expiring in various years through 2038. The Company entered into an operating lease agreement, effective October 1, 2017, for our corporate headquarters located in Fort Lauderdale, Florida where we lease approximately 6,500 square feet of office space. The lease expired on March 31, 2024 . The base rent payment is approximately $ 9,950 per month, subject to annual adjustments. On February 22, 2024, the Company executed a lease extension for 14 months effective April 1, 2024, and expires on May 31, 2025. The base rent on the extension is approximately $10,553 per month subject to a 3% annual adjustment. The Company entered into an operating lease on August 23, 2023, for approximately 10,000 square feet of ground floor retail space and a portion of the basement underneath the ground floor retail space. The lease expires August 22, 2038 , and the monthly base rent is $ 30,000 , subject to annual increases. The lease includes a 11-month free rent period between July 1, 2023, and June 30, 2024 and also includes a $ 700,000 reimbursement for tenant improvements upon completion of construction milestones as defined in the lease. Due to uncertainties as to whether these milestones will be met timely, the Company has not recorded any amounts related to the tenant improvement allowance in our condensed consolidated financial statements at lease inception or the three months ended March 31, 2024. Supplemental balance sheet information related to leases as of March 31, 2024 and December 31, 2023 is as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Assets: March 31, 2024 December 31, 2023 Operating lease - right-of-use assets $ 3,841,000 $ 3,926,000 Liabilities Current Current portion of operating leases $ 55,

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View this 10-Q filing on SEC EDGAR