Emerson Radio (MSN) 10-Q 14 Nov 19 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2019	Nov. 14, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	MSN
Entity Registrant Name	EMERSON RADIO CORP
Entity Central Index Key	0000032621
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Title of 12(b) Security	Common Stock, par value $.01 per share
Security Exchange Name	NYSEAMER
Entity Incorporation, State or Country Code	DE
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		21,042,652
Entity Shell Company	false
Entity File Number	001-07731
Entity Tax Identification Number	22-3285224
Entity Address, Address Line One	35 Waterview Blvd.
Entity Address, Address Line Two	Suite 140
Entity Address, City or Town	Parsippany
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	428-2000
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net revenues:
Net revenues	$ 1,435	$ 2,586	$ 3,048	$ 4,849
Costs and expenses:
Cost of sales	1,550	2,442	3,299	4,665
Selling, general and administrative expenses	973	918	2,056	1,935
Total costs and expenses	2,523	3,360	5,355	6,600
Operating (loss)	(1,088)	(774)	(2,307)	(1,751)
Other income:
Interest income, net	222	202	459	377
(Loss) before income taxes	(866)	(572)	(1,848)	(1,374)
Provision for income tax expense	10	23	15	71
Net (loss)	$ (876)	$ (595)	$ (1,863)	$ (1,445)
Basic (loss) per share	$ (0.04)	$ (0.03)	$ (0.09)	$ (0.06)
Diluted (loss) per share	$ (0.04)	$ (0.03)	$ (0.09)	$ (0.06)
Weighted average shares outstanding
Basic	21,043	22,405	21,043	22,515
Diluted	21,043	22,405	21,043	22,515
Net Product Sales
Net revenues:
Net revenues	$ 1,379	$ 2,474	$ 2,937	$ 4,619
Licensing Revenue
Net revenues:
Net revenues	$ 56	$ 112	$ 111	$ 230

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2019	Mar. 31, 2019
Current Assets:
Cash and cash equivalents	$ 5,084,000	$ 7,917,000
Short term investments	29,814,000	28,371,000
Accounts receivable, net	673,000	604,000
Inventory	2,621,000	3,520,000
Prepaid purchases	415,000	417,000
Prepaid expenses and other current assets	589,000	424,000
Total Current Assets	39,196,000	41,253,000
Non-Current Assets:
Property, plant, and equipment, net	5,000	6,000
Deferred tax assets, net	442,000	448,000
Right-of-use asset-operating leases	547,000
Right-of-use asset-finance leases	5,000
Other assets	135,000	154,000
Total Non-Current Assets	1,134,000	608,000
Total Assets	40,330,000	41,861,000
Current Liabilities:
Accounts payable and other current liabilities	591,000	545,000
Short-term operating lease liability	231,000
Short-term finance lease liability	1,000
Income tax payable, current portion	195,000	250,000
Deferred revenue	55,000	165,000
Total Current Liabilities	1,073,000	960,000
Non-Current Liabilities:
Long-term operating lease liability	356,000
Long-term finance lease liability	4,000
Income tax payable	2,032,000	2,173,000
Total Non-Current Liabilities	2,392,000	2,173,000
Total Liabilities	3,465,000	3,133,000
Shareholders’ Equity:
Series A Preferred shares — 10,000,000 shares authorized; 3,677 shares issued and outstanding; liquidation preference of $3,677,000	3,310,000	3,310,000
Common shares — $0.01 par value, 75,000,000 shares authorized; 52,965,797 shares issued at September 30, 2019 and March 31, 2019, respectively; 21,042,652 shares outstanding at September 30, 2019 and March 31, 2019, respectively	529,000	529,000
Additional paid-in capital	79,792,000	79,792,000
Accumulated deficit	(13,565,000)	(11,702,000)
Treasury stock, at cost (31,923,145 shares at September 30, 2019 and March 31, 2019, respectively)	(33,201,000)	(33,201,000)
Total Shareholders’ Equity	36,865,000	38,728,000
Total Liabilities and Shareholders’ Equity	$ 40,330,000	$ 41,861,000

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Mar. 31, 2019
Statement Of Financial Position [Abstract]
Preferred shares, shares authorized	10,000,000	10,000,000
Preferred shares, shares issued	3,677	3,677
Preferred shares, shares outstanding	3,677	3,677
Preferred shares, liquidation preference	$ 3,677,000	$ 3,677,000
Common shares, par value	$ 0.01	$ 0.01
Common shares, shares authorized	75,000,000	75,000,000
Common shares, shares issued	52,965,797	52,965,797
Common shares, shares outstanding	21,042,652	21,042,652
Treasury stock, shares	31,923,145	31,923,145

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operating Activities:
Net (loss)	$ (1,863)	$ (1,445)
Adjustments to reconcile net loss to net cash (used) by operating activities:
Amortization of right-of-use assets	40
Depreciation and amortization	1	4
Deferred tax assets	6	78
Asset allowances and reserves	(37)	(189)
Changes in assets and liabilities:
Accounts receivable	(32)	985
Royalty receivable		(50)
Due from affiliates		(8)
Inventory	899	(26)
Prepaid purchases	2	(855)
Prepaid expenses and other current assets	(165)	(106)
Other assets	19	(7)
Accounts payable and other current liabilities	46	(86)
Deferred revenue	(110)	(50)
Income taxes payable	(196)	(250)
Net cash (used) by operating activities	(1,390)	(2,005)
Cash Flows From Investing Activities:
Proceeds from sale of short-term investments		16,079
Purchases of short-term investments	(1,443)	(15,085)
Disposals of property, plant and equipment		1
Net cash (used) provided by investing activities	(1,443)	995
Cash Flows from Financing Activities:
Purchases of treasury stock		(727)
Net cash (used) by financing activities		(727)
Net (decrease) in cash and cash equivalents	(2,833)	(1,737)
Cash and cash equivalents at beginning of the period	7,917	25,096
Cash and cash equivalents at end of the period	5,084	23,359
Cash paid for:
Income taxes	$ 199	$ 253

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock
Balance at Mar. 31, 2018	$ 43,783	$ 3,310	$ 529	$ 79,792	$ (9,265)	$ (30,583)
Balance (in shares) at Mar. 31, 2018			52,965,797
Purchase of treasury stock	(727)					(727)
Net loss	(1,445)				(1,445)
Balance at Sep. 30, 2018	41,611	3,310	$ 529	79,792	(10,710)	(31,310)
Balance (in shares) at Sep. 30, 2018			52,965,797
Balance at Mar. 31, 2019	$ 38,728	3,310	$ 529	79,792	(11,702)	(33,201)
Balance (in shares) at Mar. 31, 2019	52,965,797		52,965,797
Net loss	$ (1,863)				(1,863)
Balance at Sep. 30, 2019	$ 36,865	$ 3,310	$ 529	$ 79,792	$ (13,565)	$ (33,201)
Balance (in shares) at Sep. 30, 2019	52,965,797		52,965,797

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Background and Basis of Presentation	NOTE 1 — BACKGROUND AND BASIS OF PRESENTATION The consolidated financial statements include the accounts of Emerson Radio Corp. and its subsidiaries (“Emerson” or the “Company”). The Company designs, sources, imports and markets certain houseware and consumer electronic products, and licenses the Company’s trademarks for a variety of products. The unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2019 and the results of operations for the three and six month periods ended September 30, 2019 and September 30, 2018. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the unaudited interim consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes; actual results could materially differ from those estimates. The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and accordingly do not include all of the disclosures normally made in the Company’s annual consolidated financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended March 31, 2019 (“fiscal 2019”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2019. The results of operations for the three and six month periods ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for any other interim periods or for the full year ending March 31, 2020 (“fiscal 2020”). Whenever necessary, reclassifications are made to conform the prior year’s consolidated financial statements to the current year’s presentation. Unless otherwise disclosed in the notes to these consolidated financial statements, the estimated fair value of the financial assets and liabilities approximates the carrying value. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases Upon adoption, the Company recognized total lease liabilities of $695,000, and corresponding right-of-use assets of $650,000, all of which is associated with leased office space. The difference between the right-of-use asset and lease liability is due to the existing deferred balance, resulting from historical straight-lining of operating leases that was reclassified upon adoption to reduce the measurement of the right-of-use assets. The Company’s Consolidated Statements of Income and Consolidated Statements of Cash Flows were not materially impacted. See Note 9, “Leases” for further details. Recently Issued Accounting Pronouncements The following ASUs were issued by the FASB which relate to or could relate to the Company as concerns the Company’s normal ongoing operations or the industry in which the Company operates. Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses” to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements. Revenue recognition : Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. Revenue is recorded net of customer discounts, promotional allowances, volume rebates and similar charges. When the Company offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 2 — EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts). Weighted average shares includes the impact of shares held in treasury. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) $ (876 ) $ (595 ) $ (1,863 ) $ (1,445 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 21,043 22,405 21,043 22,515 Net (loss) per share: Basic and diluted (loss) per share $ (0.04 ) $ (0.03 ) $ (0.09 ) $ (0.06 )

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Shareholders' Equity	NOTE 3 — SHAREHOLDERS’ EQUITY Outstanding capital stock at September 30, 2019 consisted of common stock and Series A preferred stock. The Series A preferred stock is non-voting, has no dividend preferences and has not been convertible since March 31, 2002; however, it retains a liquidation preference. At September 30, 2019, the Company had no options, warrants or other potentially dilutive securities outstanding.

Inventory

Inventory	6 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory	NOTE 4 — INVENTORY Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. As of September 30, 2019 and March 31, 2019, inventories consisted of the following (in thousands): September March Finished goods $ 2,621 $ 3,520

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 5 — INCOME TAXES At September 30, 2019, the Company had $5.4 million of U.S. federal net operating loss (“NOL”) carry forwards. These losses do not expire but are limited to utilization of 80% of taxable income in any one year. At September 30, 2019 the Company had approximately $12.7 million of U.S. state net operating loss carry forwards. The tax benefits related to these state net operating loss carry forwards and future deductible temporary differences are recorded to the extent management believes it is more likely than not that such benefits will be realized. The income of foreign subsidiaries before taxes was $135,000 for the quarter ended September 30, 2019 as compared to income before taxes of $39,000 for the quarter ended September 30, 2018. The Company analyzed the future reasonability of recognizing its deferred tax assets at September 30, 2019. As a result, the Company concluded that a valuation allowance of approximately $1,960,000 would be recorded against the assets Although the Company generated a net operating loss, it recorded income tax expense of approximately $10,000 during the three months ended September 30, 2019, primarily resulting from state income taxes. During the three months ended September 30, 2018, the Company recorded income tax expense of $23,000. During the six months ended September 30, 2019, the Company recorded income tax expense of $15,000 and for the six months ended September 30, 2018, the Company recorded income tax expense of $71,000. The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of September 30, 2019, the Company’s open tax years for examination for U.S. federal tax are 2015-2018, and for U.S. states’ tax are 2014-2018. Based on the outcome of tax examinations or due to the expiration of statutes of limitations, it is reasonably possible that the unrecognized tax benefits related to uncertain tax positions taken in previously filed returns may be different from the liabilities that have been recorded for these unrecognized tax benefits. As a result, the Company may be subject to additional tax expense.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 6 — RELATED PARTY TRANSACTIONS From time to time, Emerson engages in business transactions with its controlling shareholder, Nimble Holdings Company Limited (“Nimble”), formerly known as The Grande Holdings Limited (“Grande”), and one or more of Nimble’s direct and indirect subsidiaries. Controlling Shareholder S&T International Distribution Limited (“S&T”), which is a wholly owned subsidiary of Grande N.A.K.S. Ltd., which is a wholly owned subsidiary of Nimble, collectively have, based on a Schedule 13D/A filed with the SEC on February 15, 2019, the shared power to vote and direct the disposition of 15,243,283 shares, or approximately 72.4%, of the Company’s outstanding common stock as of September 30, 2019. Accordingly, the Company is a “controlled company” as defined in Section 801(a) of the NYSE American Company Guide. Related Party Transactions Charges of rental and utility fees on office space in Hong Kong During the three and six months ended September 30, 2019, the Company was billed approximately $43,500

Short Term Investments

Short Term Investments	6 Months Ended
	Sep. 30, 2019
Short Term Investments [Abstract]
Short Term Investments	NOTE 7 — SHORT TERM INVESTMENTS At September 30, 2019 and March 31, 2019, the Company held short term investments totaling $29.8 million and $28.4 million, respectively. These investments were comprised of bank certificates of deposit, which bear an interest rate of approximately 2.30% and will mature in December 2019.

Concentration Risk

Concentration Risk	6 Months Ended
	Sep. 30, 2019
Risks And Uncertainties [Abstract]
Concentration Risk	NOTE 8 — CONCENTRATION RISK Customer Concentration For the three months ended September 30, 2019, the Company’s three largest customers accounted for approximately 78% of the Company’s net revenues, of which Walmart accounted for 49%, Amazon accounted for 17% and Fred Meyer accounted for 12%. For the six months ended September 30, 2019, the Company’s three largest customers accounted for approximately 75% of the Company’s net revenues, of which Walmart accounted for 44%, Amazon accounted for 20% and Fred Meyer accounted for 11%. For the three months ended September 30, 2018, the Company’s three largest customers accounted for approximately 78% of the Company’s net revenues, of which Walmart accounted for 45%, Amazon accounted for 17% and D & H Distributing accounted for 16%. For the six months ended September 30, 2018, the Company’s three largest customers accounted for approximately 76% of the Company’s net revenues, of which Walmart accounted for 48%, Amazon accounted for 14% and Fred Meyer accounted for 14%. A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation. Product Concentration For the three and six months ended September 30, 2019, the Company’s gross product sales were comprised of two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 34% and 42%, respectively, of the Company’s gross product sales. Audio products generated approximately 62% For the three and six months ended September 30, 2018, the Company’s gross product sales were comprised of the same two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 40% Concentrations of Credit Risk As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top two customers accounted for 44% and 30% as of September 30, 2019, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top two customers accounted for 47% and 29% as of March 31, 2019, respectively. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations. Supplier Concentration During the three and six months ended September 30, 2019, the Company procured approximately 100% and 82% of its products for resale from its two largest factory suppliers, of which 100% and 56%, respectively, was supplied by its largest supplier. During the three and six months ended September 30, 2018, the Company procured approximately 87% and 85% of its products for resale from its two largest factory suppliers, of which 67% and 61%, respectively, was supplied by its largest supplier.

Leases

Leases	6 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Leases	NOTE 9 — LEASES The Company leases office space in the U.S. and in Hong Kong as well as a copier in the U.S. These leases have remaining non-cancellable lease terms of three to five years. The Company has elected not to separate lease and non-lease components for all leased assets. The Company did not identify any events or conditions during the quarter ended September 30, 2019 to indicate that a reassessment or re-measurement of our existing leases was required. There were also no impairment indicators identified during the quarter ended September 30, 2019 that required an impairment test for the Company’s right-of-use assets or other long-lived assets in accordance with ASC 360-10. As of September 30, 2019, the Company’s current operating and finance lease liabilities were $231,000 and $1,000, respectively and its non-current operating and finance lease liabilities were $356,000 and $4,000, respectively. The Company’s operating and finance lease right-of-use asset balances are presented in non-current assets. The net balance of the Company’s operating and finance lease right-of-use assets as of September 30, 2019 was $547,000 and $5,000, respectively. The components of lease costs, which were included in operating expenses in the Company’s condensed consolidated statements of operations, were as follows: Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Lease cost Operating lease cost $ 63 $ — $ 127 $ — Finance lease cost — — — — Amortization of right-of-use assets — — — — Interest on lease liabilities — — — — Variable lease costs — — — — Total lease cost 63 — 127 — The supplemental cash flow information related to leases are as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 66 — 131 — Operating cash flows from finance leases — — — — Financing cash flows from finance leases — — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases — — 650 — Finance leases — — 5 — Information relating to the lease term and discount rate are as follows: Weighted average remaining lease term (in months) As of September 30, 2019 As of September 30, 2018 Operating leases 31.3 — Finance leases 56.2 — Weighted average discount rate Operating leases 7.50 % — Finance leases 7.50 % — As of September 30, 2019 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2019 (excluding the 3 months ended March 31, 2019) $ 134 $ 1 2020 265 1 2021 162 1 2022 84 1 2023 — 1 Thereafter — — Total lease payments $ 645 $ 5 Less: Imputed interest (58 ) — Total $ 587 $ 5

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	6 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Preparation of Financial Statements	The unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2019 and the results of operations for the three and six month periods ended September 30, 2019 and September 30, 2018. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the unaudited interim consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes; actual results could materially differ from those estimates. The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and accordingly do not include all of the disclosures normally made in the Company’s annual consolidated financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended March 31, 2019 (“fiscal 2019”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2019.
Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases Upon adoption, the Company recognized total lease liabilities of $695,000, and corresponding right-of-use assets of $650,000, all of which is associated with leased office space. The difference between the right-of-use asset and lease liability is due to the existing deferred balance, resulting from historical straight-lining of operating leases that was reclassified upon adoption to reduce the measurement of the right-of-use assets. The Company’s Consolidated Statements of Income and Consolidated Statements of Cash Flows were not materially impacted. See Note 9, “Leases” for further details. Recently Issued Accounting Pronouncements The following ASUs were issued by the FASB which relate to or could relate to the Company as concerns the Company’s normal ongoing operations or the industry in which the Company operates. Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses” to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements.
Revenue Recognition	Revenue recognition : Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. Revenue is recorded net of customer discounts, promotional allowances, volume rebates and similar charges. When the Company offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings per Share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts). Weighted average shares includes the impact of shares held in treasury. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Numerator: Net (loss) $ (876 ) $ (595 ) $ (1,863 ) $ (1,445 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 21,043 22,405 21,043 22,515 Net (loss) per share: Basic and diluted (loss) per share $ (0.04 ) $ (0.03 ) $ (0.09 ) $ (0.06 )

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory	As of September 30, 2019 and March 31, 2019, inventories consisted of the following (in thousands): September March Finished goods $ 2,621 $ 3,520

Leases (Tables)

Leases (Tables)	6 Months Ended
	Sep. 30, 2019
Lessee Disclosure [Abstract]
Summary of Components of Lease Costs	The components of lease costs, which were included in operating expenses in the Company’s condensed consolidated statements of operations, were as follows: Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 (in thousands) (in thousands) Lease cost Operating lease cost $ 63 $ — $ 127 $ — Finance lease cost — — — — Amortization of right-of-use assets — — — — Interest on lease liabilities — — — — Variable lease costs — — — — Total lease cost 63 — 127 — The supplemental cash flow information related to leases are as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 66 — 131 — Operating cash flows from finance leases — — — — Financing cash flows from finance leases — — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases — — 650 — Finance leases — — 5 —
Summary of Information Relating to Lease Term and Discount Rate	Information relating to the lease term and discount rate are as follows: Weighted average remaining lease term (in months) As of September 30, 2019 As of September 30, 2018 Operating leases 31.3 — Finance leases 56.2 — Weighted average discount rate Operating leases 7.50 % — Finance leases 7.50 % —
Summary of Maturities of Lease Liabilities	As of September 30, 2019 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2019 (excluding the 3 months ended March 31, 2019) $ 134 $ 1 2020 265 1 2021 162 1 2022 84 1 2023 — 1 Thereafter — — Total lease payments $ 645 $ 5 Less: Imputed interest (58 ) — Total $ 587 $ 5

Background and Basis of Prese_3

Background and Basis of Presentation - Additional Information (Detail)	Sep. 30, 2019USD ($)
Background And Basis Of Presentation [Line Items]
Lease liabilities	$ 587,000
Right-of-use assets	547,000
Office Space
Background And Basis Of Presentation [Line Items]
Lease liabilities	695,000
Right-of-use assets	$ 650,000

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net (loss)	$ (876)	$ (595)	$ (1,863)	$ (1,445)
Denominator:
Denominator for basic and diluted earnings per share — weighted average shares	21,043	22,405	21,043	22,515
Net (loss) per share:
Basic and diluted (loss) per share	$ (0.04)	$ (0.03)	$ (0.09)	$ (0.06)

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail)	Sep. 30, 2019shares
Stockholders Equity Note [Abstract]
Options outstanding	0
Warrants outstanding	0
Other potentially dilutive securities outstanding	0

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Mar. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 2,621	$ 3,520

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Schedule Of Income Taxes [Line Items]
Income (loss) of foreign subsidiaries before taxes			$ 135,000	$ 39,000
Deferred tax valuation allowance against assets	$ 1,960,000		1,960,000
Income tax expense	10,000	$ 23,000	15,000	$ 71,000
U.S. federal
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	5,400,000		$ 5,400,000
Operating loss carryovers, limitations on use			At September 30, 2019, the Company had $5.4 million of U.S. federal net operating loss (“NOL”) carry forwards. These losses do not expire but are limited to utilization of 80% of taxable income in any one year.
Percentage of NOLs utilization limit against taxable income			80.00%
U.S. federal | Earliest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2015
U.S. federal | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2018
States
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	$ 12,700,000		$ 12,700,000
States | Earliest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2014
States | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2018

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Sep. 30, 2019USD ($)shares	Sep. 30, 2019USD ($)shares
Nimble Holding Company Limited
Related Party Transaction [Line Items]
Nimble's Ownership Interest in Emerson number of shares | shares	15,243,283	15,243,283
Nimble's Ownership Interest Percentage	72.40%	72.40%
VACL
Related Party Transaction [Line Items]
Advanced payment of rental and utility fees from related parties	$ 43,500	$ 87,000
Due from related parties	$ 0	$ 0

Short Term Investments - Additi

Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Mar. 31, 2019
Schedule Of Investments [Abstract]
Short term investments	$ 29,814	$ 28,371
Bank certificates of deposit interest bearing rate	2.30%
Bank certificates of deposit maturity month and year	2019-12

Concentration Risk - Additional

Concentration Risk - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019
Customer Concentration Risk | Net Revenues
Concentration Risk [Line Items]
Concentration risk, percentage	78.00%	78.00%	75.00%	76.00%
Customer Concentration Risk | Net Revenues | Walmart
Concentration Risk [Line Items]
Concentration risk, percentage	49.00%	45.00%	44.00%	48.00%
Customer Concentration Risk | Net Revenues | Amazon.com
Concentration Risk [Line Items]
Concentration risk, percentage	17.00%	17.00%	20.00%	14.00%
Customer Concentration Risk | Net Revenues | Fred Meyer
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%		11.00%	14.00%
Customer Concentration Risk | Net Revenues | D&H Distributing
Concentration Risk [Line Items]
Concentration risk, percentage		16.00%
Product Concentration Risk | Net Revenues | Microwave Ovens
Concentration Risk [Line Items]
Concentration risk, percentage	34.00%	40.00%	42.00%	45.00%
Product Concentration Risk | Net Revenues | Audio Products
Concentration Risk [Line Items]
Concentration risk, percentage	62.00%	56.00%	55.00%	50.00%
Credit Concentration Risk | Accounts Receivable | Customer One
Concentration Risk [Line Items]
Concentration risk, percentage			44.00%		47.00%
Credit Concentration Risk | Accounts Receivable | Customer Two
Concentration Risk [Line Items]
Concentration risk, percentage			30.00%		29.00%
Supplier Concentration Risk | Products for Resale
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	67.00%	56.00%	61.00%
Supplier Concentration Risk | Products for Resale | Two Largest Factory Suppliers
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	87.00%	82.00%	85.00%

Leases - Additional Information

Leases - Additional Information (Detail)	Sep. 30, 2019USD ($)
Lessee Lease Description [Line Items]
Operating lease, liabilities current	$ 231,000
Finance lease, liabilities current	1,000
Operating lease, liabilities non-current	356,000
Finance lease, liabilities, non-current	4,000
Operating right-of-use assets	547,000
Finance lease right-of-use assets	$ 5,000
Minimum
Lessee Lease Description [Line Items]
Non-cancellable lease terms	3 years
Maximum
Lessee Lease Description [Line Items]
Non-cancellable lease terms	5 years

Leases - Summary of Components

Leases - Summary of Components of Lease Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Lease cost
Operating lease cost	$ 63	$ 0	$ 127	$ 0
Finance lease cost	0	0	0	0
Amortization of right-of-use assets	0	0	0	0
Interest on lease liabilities	0	0	0	0
Variable lease costs	0	0	0	0
Total lease cost	63	0	127	0
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	66	0	131	0
Operating cash flows from finance leases	0	0	0	0
Financing cash flows from finance leases	0	0	0	0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	0	0	650	0
Finance leases	$ 0	$ 0	$ 5	$ 0

Leases - Summary of Information

Leases - Summary of Information Relating to Lease Term and Discount Rate (Detail)	Sep. 30, 2019
Weighted average remaining lease term (in months)
Operating leases	31 years 3 months 18 days
Finance leases	56 years 2 months 12 days
Weighted average discount rate
Operating leases	7.50%
Finance leases	7.50%

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Liabilities (Detail) $ in Thousands	Sep. 30, 2019USD ($)
Lessee Disclosure [Abstract]
Operating Leases 2019 (excluding the 3 months ended March 31, 2019)	$ 134
Operating Leases 2020	265
Operating Leases 2021	162
Operating Leases 2022	84
Operating Leases Total lease payments	645
Operating Leases Less: Imputed interest	(58)
Lease liabilities	587
Finance Leases 2019 (excluding the 3 months ended March 31, 2019)	1
Finance Leases 2020	1
Finance Leases 2021	1
Finance Leases 2022	1
Finance Leases 2023	1
Finance Leases Total lease payments	5
Finance Leases Total	$ 5