Singing Machine Co. Files 10-Q for Q2 2024

TL;DR

Singing Machine Co. 10-Q filed. Financials for period ending 6/30/24 are in.

AI Summary

Singing Machine Co., Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first half of its fiscal year. Specific financial figures and operational details are presented within the filing.

Why It Matters

This filing provides investors with an update on Singing Machine Co.'s financial performance and position, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the company operates in a consumer electronics market which can be subject to economic fluctuations and competitive pressures.

Key Players & Entities

• SINGING MACHINE CO INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240819 (date) — Filing Date
• 6301 NW 5TH WAY, STE 2900 (address) — Business Address
• FORT LAUDERDALE (location) — Business City
• FL (state) — Business State
• 33309 (zip_code) — Business Zip
• (954) 596-1000 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share MICS NASDAQ Cap

Filing Documents

• form10-q.htm (10-Q) — 705KB
• ex31-1.htm (EX-31.1) — 12KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 9KB
• 0001493152-24-032956.txt ( ) — 4040KB
• mics-20240630.xsd (EX-101.SCH) — 34KB
• mics-20240630_cal.xml (EX-101.CAL) — 51KB
• mics-20240630_def.xml (EX-101.DEF) — 135KB
• mics-20240630_lab.xml (EX-101.LAB) — 314KB
• mics-20240630_pre.xml (EX-101.PRE) — 248KB
• form10-q_htm.xml (XML) — 457KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Stockholders'(Deficit) Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 24

SIGNATURES

SIGNATURES 25 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The Singing Machine Company, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (Unaudited) Assets Current Assets Cash $ 1,245,000 $ 6,703,000 Accounts receivable, net of allowances of $ 86,919 and $ 174,000 , respectively 2,349,000 7,308,000 Due from Oxford Bank 187,000 - Accounts receivable related parties 414,000 269,000 Accounts receivable 414,000 269,000 Inventory 6,910,000 6,871,000 Returns asset 619,000 1,919,000 Prepaid expenses and other current assets 67,000 136,000 Total Current Assets 11,791,000 23,206,000 Property and equipment, net 305,000 404,000 Operating leases - right of use assets 178,000 3,926,000 Other non-current assets 93,000 179,000 Total Assets $ 12,367,000 $ 27,715,000 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 3,676,000 $ 7,616,000 Accrued expenses 1,842,000 2,614,000 Refund due to customer 1,171,000 1,743,000 Customer prepayments 38,000 687,000 Reserve for sales returns 2,174,000 3,390,000 Other current liabilities 37,000 75,000 Current portion of operating lease liabilities 165,000 84,000 Total Current Liabilities 9,103,000 16,209,000 Other liabilities, net of current portion - 3,000 Operating lease liabilities, net of current portion 4,136,000 3,925,000 Total Liabilities 13,239,000 20,137,000 Commitments and Contingencies - - Shareholders' (Deficit) 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; 7,418,061 issued and 6,418,061 shares outstanding at June 30, 2024 and 6,418,061 issued and outstanding at December 31, 2023. 64,000 64,000 Additional paid-in capital 33,465,000 33,429,000 Accumulated deficit ( 34,401,000 ) ( 25,915,000 ) Total Sharehold

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View this 10-Q filing on SEC EDGAR