Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 25, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MSN | ||
Entity Registrant Name | EMERSON RADIO CORP | ||
Entity Central Index Key | 0000032621 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 21,042,652 | ||
Entity Public Float | $ 3,942,991 | ||
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 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Security Exchange Name | NYSEAMER | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Document Part of the Form 10-K Proxy Statement for Annual Meeting of Stockholders for the fiscal year ended March 31, 2021, or an amendment to this Annual Report on Form 10-K Part III |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net revenues: | ||
Net revenues | $ 7,445 | $ 6,293 |
Costs and expenses: | ||
Cost of sales | 5,749 | 5,144 |
Selling, general and administrative expenses | 5,891 | 5,775 |
Total costs and expenses | 11,640 | 10,919 |
Operating loss | (4,195) | (4,626) |
Other income: | ||
Interest income, net | 151 | 776 |
Income from governmental assistance programs | 83 | |
Loss before income taxes | (3,961) | (3,850) |
Provision for income tax expense | 15 | 457 |
Net loss | $ (3,976) | $ (4,307) |
Basic loss per share | $ (0.19) | $ (0.20) |
Diluted loss per share | $ (0.19) | $ (0.20) |
Weighted average shares outstanding | ||
Basic | 21,043 | 21,043 |
Diluted | 21,043 | 21,043 |
Net Product Sales | ||
Net revenues: | ||
Net revenues | $ 7,200 | $ 6,065 |
Licensing Revenue | ||
Net revenues: | ||
Net revenues | $ 245 | $ 228 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 5,245,000 | $ 6,276,000 |
Short term investments | 25,045,000 | 28,101,000 |
Accounts receivable, net | 691,000 | 484,000 |
Inventory | 1,961,000 | 1,918,000 |
Prepaid purchases | 361,000 | 250,000 |
Prepaid expenses and other current assets | 289,000 | 327,000 |
Total Current Assets | 33,592,000 | 37,356,000 |
Non-Current Assets: | ||
Property and equipment, net | 4,000 | |
Right-of-use asset-operating leases | 213,000 | 442,000 |
Right-of-use asset-finance leases | 3,000 | 5,000 |
Other assets | 94,000 | 94,000 |
Total Non-Current Assets | 310,000 | 545,000 |
Total Assets | 33,902,000 | 37,901,000 |
Current Liabilities: | ||
Accounts payable and other current liabilities | 788,000 | 592,000 |
Paycheck Protection Program loan | 204,000 | |
Due to affiliate | 1,000 | |
Short-term operating lease liability | 152,000 | 241,000 |
Short-term finance lease liability | 1,000 | 1,000 |
Income tax payable, current portion | 195,000 | 195,000 |
Deferred revenue | 195,000 | 180,000 |
Total Current Liabilities | 1,536,000 | 1,209,000 |
Non-Current Liabilities: | ||
Long-term operating lease liability | 82,000 | 234,000 |
Long-term finance lease liability | 3,000 | 4,000 |
Income tax payable | 1,836,000 | 2,033,000 |
Total Non-Current Liabilities | 1,921,000 | 2,271,000 |
Total Liabilities | 3,457,000 | 3,480,000 |
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 March 31, 2021 and March 31, 2020, respectively; 21,042,652 shares outstanding at March 31, 2021 and March 31, 2020, respectively | 529,000 | 529,000 |
Additional paid-in capital | 79,792,000 | 79,792,000 |
Accumulated deficit | (19,985,000) | (16,009,000) |
Treasury stock, at cost (31,923,145 shares at March 31, 2021 and March 31, 2020, respectively) | (33,201,000) | (33,201,000) |
Total Shareholders’ Equity | 30,445,000 | 34,421,000 |
Total Liabilities and Shareholders’ Equity | $ 33,902,000 | $ 37,901,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
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 CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock |
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 | |||||
Net loss | (4,307) | (4,307) | ||||
Balance at Mar. 31, 2020 | $ 34,421 | 3,310 | $ 529 | 79,792 | (16,009) | (33,201) |
Balance (in shares) at Mar. 31, 2020 | 52,965,797 | 52,965,797 | ||||
Net loss | $ (3,976) | (3,976) | ||||
Balance at Mar. 31, 2021 | $ 30,445 | $ 3,310 | $ 529 | $ 79,792 | $ (19,985) | $ (33,201) |
Balance (in shares) at Mar. 31, 2021 | 52,965,797 | 52,965,797 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net (loss) | $ (3,976) | $ (4,307) |
Adjustments to reconcile net loss to net cash (used) by operating activities: | ||
Amortization of right-of-use assets | 231 | 33 |
Depreciation and amortization | 2 | 2 |
Deferred tax assets | 448 | |
Asset allowances and reserves | (22) | 3 |
Changes in assets and liabilities: | ||
Accounts receivable | (185) | 117 |
Inventory | (43) | 1,602 |
Prepaid purchases | (111) | 167 |
Prepaid expenses and other current assets | 38 | 97 |
Other assets | 60 | |
Accounts payable and other current liabilities | 196 | 47 |
Short term lease liabilities | (89) | |
Long term lease liabilities | (153) | |
Due to affiliate | 1 | |
Income taxes payable | (197) | (195) |
Deferred revenue | 15 | 15 |
Net cash (used) by operating activities | (4,293) | (1,911) |
Cash Flows From Investing Activities: | ||
Proceeds from sale of short-term investments | 28,101 | 1,850 |
Purchases of short-term investments | (25,045) | (1,580) |
Disposals of property and equipment | 2 | |
Net cash provided by investing activities | 3,058 | 270 |
Cash Flows from Financing Activities: | ||
Proceeds from Paycheck Protection Program loan | 204 | |
Net cash provided by financing activities | 204 | |
Net (decrease) in cash and cash equivalents | (1,031) | (1,641) |
Cash and cash equivalents at beginning of the year | 6,276 | 7,917 |
Cash and cash equivalents at end of the year | 5,245 | 6,276 |
Cash paid for: | ||
Interest | 7 | |
Income taxes | $ 197 | $ 199 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES: Description of the Business The consolidated financial statements include the accounts of Emerson Radio Corp. (“Emerson”, consolidated — the “Company”), and its subsidiaries. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses the Emerson trademark for a variety of products domestically and internationally. Basis of Presentation It is the Company’s policy to prepare its consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Certain items in prior year financials may have been reclassified to conform to current year presentation. Revised Financial Statements Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers and warehousing costs. The Company is no longer including an allocation of those selling, general and administrative expenses that are directly related to these activities in Cost of Sales. The Company reclassified approximately $1,611,500 on its Consolidated Statements of Operations for fiscal 2020 from Cost of Sales to Selling, General and Administrative expenses to conform to its current presentation. The reclassifications were made to more accurately present the relationship between the Company’s net product sales and its cost of sales. The reclassifications had no impact on the Company’s previously reported operating losses or net losses for fiscal 2020. Use of Estimates In preparing consolidated financial statements in conformity with generally accepted accounting principles, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents Highly liquid investments with original maturities of three months or less at the time of purchase are considered to be cash equivalents. Fair Values of Financial Instruments The carrying amounts for cash and cash equivalents, trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these financial instruments. Long-Lived Assets The Company’s long-lived assets include property and equipment. At March 31, 2021, the Company had approximately nil of property, plant and equipment, net of accumulated depreciation. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topics 350 “Intangibles” and 360 “Property, Plant and Equipment”. The recoverability of assets held and used is measured by a comparison of the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Future events could cause the Company to conclude that impairment indicators exist and that long-lived assets may be impaired. If impairment is deemed to exist, the asset will be written down to fair value. Any such impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. As of March 31, 2021, the Company had no long-lived assets. Property and Equipment Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets being depreciated. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and betterments are capitalized and depreciated over the remaining estimated useful lives of the related assets. At time of disposal, the cost and related accumulated depreciation are removed from the Company’s records and the difference between net carrying value of the asset and the sale proceeds is recorded as a gain or loss. Depreciation of property and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture and Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease Revenue Recognition Distribution of products 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. The Company adopted ASC topic 606 effective April 1, 2018. Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized. Prior to the adoption of ASC topic 606, the Company followed the provisions of ASC topic 605. The adoption of ASC topic 606 did not have a material impact on revenue recognition as compared to revenue recognition provided under ASC topic 605. 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. The Company offers limited warranties for its consumer electronics, comparable to those offered to consumers by the Company’s competitors in the United States. Such warranties typically consist of a one year period for microwaves and a 90 day period for audio products, under which the Company pays for labor and parts, or offers a new or similar unit in exchange for a non-performing unit. Licensing In addition to the distribution of products, the Company grants licenses for the right to access the Company’s intellectual property, specifically the Company’s trademarks, for a stated term for the manufacture and/or sale of consumer electronics and other products under agreements which require payment of either i) a non-refundable minimum guaranteed royalty or, ii) the greater of the actual royalties due (based on a contractual calculation, normally comprised of actual product sales by the licensee multiplied by a stated royalty rate, or “Sales Royalties”) or a minimum guaranteed royalty amount. In the case of (i), such amounts are recognized as revenue on a straight-line basis over the term of the license agreement. In the case of (ii), Sales Royalties in excess of guaranteed minimums are accounted for as variable fees and are not recognized as revenue until the Company has ascertained that the licensee’s sales of products have exceeded the guaranteed minimum. In effect, the Company recognizes the greater of Sales Royalties earned to date or the straight-line amount of minimum guaranteed royalties to date. In the case where a royalty is paid to the Company in advance, the royalty payment is initially recorded as a liability and recognized as revenue as the royalties are deemed to be earned according to the principles outlined above. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out basis. The Company records inventory reserves to reduce the carrying value of inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves may be required. Conversely, if market conditions improve, such reserves are reduced. Accounts Receivable The Company extends credit based upon evaluations of a customer’s financial condition and provides for any anticipated credit losses in the Company’s financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Credit is extended for periods between 10 and 90 days, on a net basis. If the financial condition of a customer deteriorates, resulting in an impairment of that customer’s ability to make payments, additional reserves may be required. Conversely, reserves are reduced to reflect credit and collection improvements. Receivables are written off once they are considered uncollectible. The allowance for doubtful accounts receivable decreased $2,400 for the year ended March 31, 2021 and increased by $2,300 for the year ended March 31, 2020. Cost of Sales Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers and warehousing costs. Selling, General and Administrative Expenses Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of procuring product or costs not included in other operating costs and expenses. Sales Return Reserves 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. The sales return reserves decreased $17,000 for the year ended March 31, 2021 and decreased $21,000 for the year ended March 31, 2020. Foreign Currency The assets and liabilities of foreign subsidiaries, whose functional currencies are other than the United States Dollar, have been translated at current exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the year. Related translation adjustments are reported as a separate component of shareholders’ equity. Losses and gains resulting from foreign currency transactions are included in the results of operations. The Company generally does not enter into foreign currency exchange contracts to hedge its exposures related to foreign currency fluctuations and there were no foreign exchange forward contracts held by the Company at March 31, 2021 or March 31, 2020. Advertising Expenses Advertising expenses are charged against earnings as incurred and are included in selling, general and administrative expenses. The Company incurred $23,000 of advertising expenses during fiscal 2021 and $165,000 during fiscal 2020. Sales Allowance and Marketing Support Expenses Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 606, “Revenue from Contracts with Customers”. At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 606, “Revenue from Contracts with Customers.” (i) sales incentives offered to customers that meet the criteria for accrual and (ii) an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within ASC topic 606. 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. The sales and marketing support accrual activity for fiscal 2021 and fiscal 2020 was as follows (in thousands): Balance at March 31, 2019 $ 84 additions 289 usages (300 ) adjustments 26 Balance at March 31, 2020 $ 99 additions 412 usages (367 ) adjustments (53 ) Balance at March 31, 2021 $ 91 Interest income, net The Company records interest income as earned and interest expense as incurred. The net interest income for fiscal 2021 and 2020 consists of: 2021 2020 (In thousands) Interest expense $ (7 ) $ — Interest income 158 776 Interest income, net $ 151 $ 776 Income Taxes Deferred income taxes are recorded to account for the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets have been recorded net of an appropriate valuation allowance, to the extent management believes it is more likely than not that such assets will be realized. (See Note 5 “Income Taxes.”) Any tax penalties are recorded as part of selling, general and administrative expenses and any interest to which the Company is subject, is recorded as a part of income tax expense. Penalties and interest incurred during fiscal 2021 and fiscal 2020 were approximately nil Comprehensive Income Comprehensive income is net income adjusted for foreign currency translation adjustments. Earnings Per Common Share Earnings per common share are based upon the weighted average number of common and common equivalent shares outstanding. Outstanding stock options and warrants are treated as common stock equivalents when dilution results from their assumed exercise. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued 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 14, “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 2019-12 “Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. This standard is required to take effect in the Company’s first quarter (June 2021) of the Company’s fiscal year ending March 31, 2022. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. 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. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 — INVENTORIES: Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. As of March 31, 2021 and March 31, 2020, inventories consisted exclusively of purchased finished goods. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 3 — 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, or with entities related to the Company’s Chairman of the Board. Set forth below is a summary of such transactions. 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 Securities and Exchange Commission (“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 March 31, 2021. 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 fiscal 2021 and fiscal 2020, the Company was billed approximately $172,000 and $174,000, respectively, for rental and utility fees from Vigers Appraisal and Consulting Ltd (“VACL”), which is a company related to the Company’s Chairman of the Board. During fiscal 2021 and fiscal 2020, the Company was billed approximately $5,000 and $6,000, respectively, for its share of installation charges related to an air conditioning system, and purchase of protective materials for coronavirus from Vigers Strategic Services Ltd (“VSSL”), which is a company related to the Company’s Chairman of the Board. Vigers Strategic Services Ltd is formerly known as Lafe Strategic Services Ltd. The Company owed approximately $1,000 and $300 to VSSL related to these charges as at March 31, 2021 and March 31, 2020, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 4 — PROPERTY AND EQUIPMENT: As of March 31, 2021 and 2020, property and equipment is comprised of the following: 2021 2020 (In thousands) Computer equipment and software $ 217 $ 217 Furniture and fixtures 163 167 Leasehold improvements 8 8 388 392 Less accumulated depreciation and amortization (388 ) (388 ) $ — $ 4 Depreciation of property and equipment amounted to approximately $2,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 — INCOME TAXES: The Company’s provision for income tax expense for fiscal 2021 and fiscal 2020 was as follows: 2021 2020 (In thousands) Current: Federal $ — $ — Foreign, state and other 15 6 Deferred: Federal — 346 Foreign, state and other — 105 Provision for income tax expense $ 15 $ 457 The Company files a consolidated federal return and certain state and local income tax returns. The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 21% to earnings before income taxes for fiscal 2021 and fiscal 2020 is analyzed below: 2021 2020 (In thousands) Statutory provision $ (832 ) $ (805 ) Foreign subsidiary (14 ) (51 ) State taxes (184 ) (267 ) Permanent differences 31 17 Adjustment to prior year taxes 399 27 Valuation allowance 615 1,536 Provision for income tax expense $ 15 $ 457 As of March 31, 2021 and March 31, 2020, the significant components of the Company’s deferred tax assets which were classified as non-current, were as follows: 2021 2020 (In thousands) Deferred tax assets: Accounts receivable reserves $ 32 $ 38 Inventory reserves 162 164 Accruals 18 20 Property, plant and equipment and intangible assets 67 91 Net operating loss and credit carry forwards 3,237 2,588 Valuation allowance (3,516 ) (2,901 ) Total deferred tax assets $ — $ — The Company has $11.0 million of U.S. federal net operating loss carry forwards (“NOLs”) as of March 31, 2021. The Company has $14.5 million of state NOLs as of March 31, 2021 as follows: Loss Year (Fiscal) Included in DTA Expiration Year (Fiscal) 2016 $1.4 million 2034 2017 $0.8 million 2036 2018 $2.6 million 2037 2019 $2.7 million 2038 2020 $3.0 million 2039 2021 $4.0 million 2040 The tax benefits related to these state NOLs 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 $123,000 for the fiscal year ended March 31, 2021 as compared to a loss before taxes of $425,000 for the fiscal year ended March 31, 2020, respectively. The Company analyzed the future reasonability of recognizing its deferred tax assets at March 31, 2021. As a result, the Company concluded that a valuation allowance of approximately $3,516,000 would be recorded against the assets. The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of March 31, 2021, the Company’s open tax years for examination for U.S. federal tax are 2016-2019, and for U.S. states’ tax are 2011-2019. 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. As of March 31, 2021 the Company is asserting under ASC 740-30 that all of the unremitted earnings of its foreign subsidiaries are indefinitely invested. The Company evaluates this assertion each period based on a number of factors, including the operating plans, budgets, and forecasts for both the Company and its foreign subsidiaries; the long-term and short-term financial requirements in the U.S. and in each foreign jurisdiction; and the tax consequences of any decision to repatriate earnings of foreign subsidiaries to the U.S. The Tax Cut and Job Act (“TCJA”) establishes new tax rules designed to tax U.S. companies on global intangible low-taxed income (GILTI) earned by foreign subsidiaries. The Company has evaluated this provision of the TCJA and the application of ASC 740 and its impact is reflected in the financial statements as of March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 — COMMITMENTS AND CONTINGENCIES: The Company’s ERP software provider is subscription based with annual commitments as follows (in thousands). Fiscal Years Amount 2022 $ 29 2023 — 2024 — 2025 — Thereafter — Total $ 29 Rent expense resulting from leases with non-affiliated companies aggregated $92,000 and $97,000, respectively, for fiscal 2021 and 2020. Letters of Credit: The Company utilizes the services of one of its banks to issue secured letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At March 31, 2021 and March 31, 2020, the Company had no letters of credit outstanding. Capital Expenditure and Other Commitments: As of March 31, 2021 and March 31, 2020, there were no capital expenditures or other commitments other than the normal purchase orders used to secure product. Employee Benefit Plan: The Company currently sponsors a defined contribution 401(k) retirement plan which is subject to the provisions of the Employee Retirement Income Security Act. The Company matches a percentage of the participants’ contributions up to a specified amount. These contributions to the plan for fiscal 2021 and 2020 were $21,000 and $23,000, respectively, and were charged against earnings for the periods presented. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 7 — SHAREHOLDERS’ EQUITY: Common Shares: Authorized common shares total 75,000,000 with a par value $0.01 per share, of which 21,042,652 were outstanding as of March 31, 2021 and Series A Preferred Stock: The Company has issued and outstanding 3,677 shares of Series A Preferred Stock, $.01 par value (“Preferred Stock”), with a face value of $3,677,000, which had no determinable market value as of March 31, 2021. The Preferred Stock is non-voting, has no dividend preferences and has not been convertible since March 31, 2002; however, it retains a liquidation preference. |
Short Term Investments
Short Term Investments | 12 Months Ended |
Mar. 31, 2021 | |
Short Term Investments [Abstract] | |
Short Term Investments | NOTE 8 — SHORT TERM INVESTMENTS: At March 31, 2021 and March 31, 2020, the Company held short-term investments in deposits totaling $25.0 million and $28.1 million, respectively. The Company held |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 9 — NET LOSS PER SHARE: The following table sets forth the computation of basic and diluted loss per share for the years ended March 31, 2021 and March 31, 2020: 2021 2020 Numerator: Net loss $ (3,976 ) $ (4,307 ) Denominator: Denominator for basic and diluted loss per share — weighted average shares 21,043 21,043 Net loss per share: Basic and diluted loss per share $ (0.19 ) $ (0.20 ) For the years ended March 31, 2021 and March 31, 2020, there were no outstanding instruments which were potentially dilutive. |
License Agreements
License Agreements | 12 Months Ended |
Mar. 31, 2021 | |
License Agreements [Abstract] | |
License Agreements | NOTE 10 — LICENSE AGREEMENTS: The Company is currently party to one license agreement that allows the licensee to access the Company’s trademarks for the manufacture and/or the sale of consumer electronics and other products. The license agreement (i) allows the licensee to use the Company’s trademarks for a specific product category, or for sales within specific geographic areas, or for sales to a specific customer base, or any combination of the above, or any other category that might be defined in applicable license agreement and (ii) may be subject to renewal at the initial expiration of applicable agreement and is governed by the laws of the United States. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | NOTE 11 — LEGAL PROCEEDINGS: The Company is not currently a party to any legal proceedings other than litigation matters, in most cases involving ordinary and routine claims incidental to its business. Management cannot estimate with certainty the Company’s ultimate legal and financial liability with respect to such pending litigation matters. However, management believes, based on its examination of such matters, that the Company’s ultimate liability will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Mar. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | NOTE 12 — RISKS AND UNCERTAINTIES: Customer Concentration For fiscal 2021, the Company’s three largest customers accounted for approximately 81% of the Company’s net revenues, with Walmart accounting for 37%, Amazon.com accounting for 33% and Fred Meyer accounting for 11%. For fiscal 2020, the Company’s three largest customers accounted for approximately 80% of the Company’s net revenues with Walmart accounting for 44%, Amazon.com accounting for 25% and Fred Meyer accounting for 11%. Product Concentration For fiscal 2021, the Company’s gross product sales were comprised of four product types within two categories — housewares products and audio products — and microwave ovens, which product type is within the housewares category, generated approximately 35% of the Company’s gross product sales. Audio products generated approximately 63% of the Company’s gross product sales during fiscal 2021. For fiscal 2020, the Company’s gross product sales were comprised of the same four product types within the same two categories — housewares products and audio products — and microwave ovens, which product type is within the housewares category, generated approximately 35% of the Company’s gross product sales. Audio products generated approximately 61% of the Company’s gross product sales during fiscal 2020. As a result of this dependence, a significant decline in pricing of, or market acceptance of these product types and categories, either in general or specifically as marketed by the Company, would have a material adverse effect on the Company’s business, financial condition and results of operations. Because the market for these product types and categories is characterized by periodic new product introductions, the Company’s future financial performance will depend, in part, on the successful and timely development and customer acceptance of new and enhanced versions of these product types and other products distributed by the Company. There can be no assurance that the Company will continue to be successful in marketing these products types within these categories or any other new or enhanced products. Concentrations of Credit Risk As a percent of the Company’s total trade accounts receivable, net of specific reserves, Amazon.com and Walmart accounted for 69% and 28% as of March 31, 2021, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, Amazon.com and Walmart accounted for 45% and 45% as of March 31, 2020, 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. The accounts receivable allowance for doubtful accounts on the Company’s total trade accounts receivable balances was approximately $2,000 at March 31, 2021 and approximately $4,000 at March 31, 2020. 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. The Company maintains its cash accounts with major U.S. and foreign financial institutions. The Company’s cash and restricted cash balances on deposit in the U.S. as of March 31, 2021 and March 31, 2020 were insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per qualifying bank account in accordance with FDIC rules. The Company’s cash, cash equivalents and restricted cash balances in excess of these FDIC-insured limits were approximately $5.0 million and approximately $6.0 million at March 31, 2021 and March 31, 2020, respectively. Supplier Concentration During fiscal 2021, the Company procured approximately 99% of its products for resale from its two largest factory suppliers, both of which are located in China, and of these, the Company procured approximately 59% of these products from one of them and 40% from the other. During fiscal 2020, the Company procured approximately 87% of its products for resale from its two largest factory suppliers, and of these, the Company procured approximately 50% of these products from one of them and 37% from the other. No assurance can be given that ample supply of product would be available at current prices and on current credit terms. This is if the Company were required to seek alternative sources of supply, without adequate notice by a supplier or a reasonable opportunity to seek alternate production facilities and component parts. Any resulting significant shortage of product supply would have a material adverse effect on the Company’s business, financial condition and results of operation. |
Geographic Information
Geographic Information | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | NOTE 13 — GEOGRAPHIC INFORMATION: Net revenues and long-lived assets of the Company for the fiscal years ended March 31, 2021 and March 31, 2020 are summarized below by geographic area (in thousands). Net revenues are attributed to geographic area based on the location of the customer. Year Ended March 31, 2021 U.S. Foreign Consolidated Net revenues $ 7,445 $ — $ 7,445 Long-lived assets $ 178 $ 132 $ 310 Year Ended March 31, 2020 U.S. Foreign Consolidated Net revenues $ 6,293 $ — $ 6,293 Long-lived assets $ 252 $ 293 $ 545 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | NOTE 14 — 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 five months to four 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 fiscal 2021 to indicate that a reassessment or re-measurement of the Company’s existing leases was required. There were also no impairment indicators identified during fiscal 2021 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 March 31, 2021, the Company’s current operating and finance lease liabilities were $152,000 and $1,000, respectively, and its non-current operating and finance lease liabilities were approximately $82,000 and $3,000, 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 March 31, 2021 were approximately $213,000 and $3,000, respectively. The components of lease costs, which were included in operating expenses in the Company’s condensed consolidated statements of operations, were as follows: Twelve Months Ended March 31, 2021 2020 (in thousands) Lease cost Operating lease cost $ 255 $ 254 Finance lease cost — — Amortization of right-of-use assets — — Interest on lease liabilities — — Variable lease costs — — Total lease cost 255 254 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 266 264 Operating cash flows from finance leases — — Financing cash flows from finance leases — 1 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 March 31, 2021 As of March 31, 2020 Operating leases 17.4 26.0 Finance leases 38.2 50.2 Weighted average discount rate Operating leases 7.50 % 7.50 % Finance leases 7.50 % 7.50 % As of March 31, 2021 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2022 $ 162 $ 1 2023 84 1 2024 — 1 2025 — 1 Thereafter — — Total lease payments $ 246 $ 4 Less: Imputed interest (12 ) — Total $ 234 $ 4 |
Paycheck Protection Program and
Paycheck Protection Program and Employment Support Scheme | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Program and Employment Support Scheme | NOTE 15 — PAYCHECK PROTECTION PROGRAM AND EMPLOYMENT SUPPORT SCHEME: In April and May of 2020, the Company applied for and received aggregate loan proceeds in the amount of approximately $204,000 under the Paycheck Protection Program (”PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. Under the CARES Act, loan forgiveness is available as long as the Company used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintained its payroll levels during the eight-week period beginning on the date of the PPP loan approval. The Company used all of the PPP loan proceeds for qualifying expenses in accordance with the terms of the CARES Act and intends to apply for forgiveness of the loan to the extent applicable, although there can be no assurance that such forgiveness will occur. Any unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. As of March 31, 2021, the Company’s PPP loan has accrued approximately $1,850 in unpaid interest. The Hong Kong government implemented a similar program called the Employment Support Scheme (“ESS”). It provided grants to companies who retained their employees during the COVID-19 outbreak. The Company’s Hong Kong subsidiary applied for and was granted approximately $83,000 during fiscal 2021. The ESS subsidy is presented as other income in the consolidated statements of operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business The consolidated financial statements include the accounts of Emerson Radio Corp. (“Emerson”, consolidated — the “Company”), and its subsidiaries. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses the Emerson trademark for a variety of products domestically and internationally. |
Basis of Presentation | Basis of Presentation It is the Company’s policy to prepare its consolidated financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Certain items in prior year financials may have been reclassified to conform to current year presentation. |
Revised Financial Statements | Revised Financial Statements Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers and warehousing costs. The Company is no longer including an allocation of those selling, general and administrative expenses that are directly related to these activities in Cost of Sales. The Company reclassified approximately $1,611,500 on its Consolidated Statements of Operations for fiscal 2020 from Cost of Sales to Selling, General and Administrative expenses to conform to its current presentation. The reclassifications were made to more accurately present the relationship between the Company’s net product sales and its cost of sales. The reclassifications had no impact on the Company’s previously reported operating losses or net losses for fiscal 2020. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with generally accepted accounting principles, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents Highly liquid investments with original maturities of three months or less at the time of purchase are considered to be cash equivalents. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amounts for cash and cash equivalents, trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these financial instruments. |
Long-Lived Assets | Long-Lived Assets The Company’s long-lived assets include property and equipment. At March 31, 2021, the Company had approximately nil of property, plant and equipment, net of accumulated depreciation. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topics 350 “Intangibles” and 360 “Property, Plant and Equipment”. The recoverability of assets held and used is measured by a comparison of the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Future events could cause the Company to conclude that impairment indicators exist and that long-lived assets may be impaired. If impairment is deemed to exist, the asset will be written down to fair value. Any such impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. As of March 31, 2021, the Company had no long-lived assets. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets being depreciated. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and betterments are capitalized and depreciated over the remaining estimated useful lives of the related assets. At time of disposal, the cost and related accumulated depreciation are removed from the Company’s records and the difference between net carrying value of the asset and the sale proceeds is recorded as a gain or loss. Depreciation of property and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture and Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Revenue Recognition | Revenue Recognition Distribution of products 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. The Company adopted ASC topic 606 effective April 1, 2018. Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized. Prior to the adoption of ASC topic 606, the Company followed the provisions of ASC topic 605. The adoption of ASC topic 606 did not have a material impact on revenue recognition as compared to revenue recognition provided under ASC topic 605. 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. The Company offers limited warranties for its consumer electronics, comparable to those offered to consumers by the Company’s competitors in the United States. Such warranties typically consist of a one year period for microwaves and a 90 day period for audio products, under which the Company pays for labor and parts, or offers a new or similar unit in exchange for a non-performing unit. Licensing In addition to the distribution of products, the Company grants licenses for the right to access the Company’s intellectual property, specifically the Company’s trademarks, for a stated term for the manufacture and/or sale of consumer electronics and other products under agreements which require payment of either i) a non-refundable minimum guaranteed royalty or, ii) the greater of the actual royalties due (based on a contractual calculation, normally comprised of actual product sales by the licensee multiplied by a stated royalty rate, or “Sales Royalties”) or a minimum guaranteed royalty amount. In the case of (i), such amounts are recognized as revenue on a straight-line basis over the term of the license agreement. In the case of (ii), Sales Royalties in excess of guaranteed minimums are accounted for as variable fees and are not recognized as revenue until the Company has ascertained that the licensee’s sales of products have exceeded the guaranteed minimum. In effect, the Company recognizes the greater of Sales Royalties earned to date or the straight-line amount of minimum guaranteed royalties to date. In the case where a royalty is paid to the Company in advance, the royalty payment is initially recorded as a liability and recognized as revenue as the royalties are deemed to be earned according to the principles outlined above. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out basis. The Company records inventory reserves to reduce the carrying value of inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves may be required. Conversely, if market conditions improve, such reserves are reduced. |
Accounts Receivable | Accounts Receivable The Company extends credit based upon evaluations of a customer’s financial condition and provides for any anticipated credit losses in the Company’s financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Credit is extended for periods between 10 and 90 days, on a net basis. If the financial condition of a customer deteriorates, resulting in an impairment of that customer’s ability to make payments, additional reserves may be required. Conversely, reserves are reduced to reflect credit and collection improvements. Receivables are written off once they are considered uncollectible. The allowance for doubtful accounts receivable decreased $2,400 for the year ended March 31, 2021 and increased by $2,300 for the year ended March 31, 2020. |
Cost of Sales | Cost of Sales Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers and warehousing costs. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of procuring product or costs not included in other operating costs and expenses. |
Sales Return Reserves | Sales Return Reserves 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. The sales return reserves decreased $17,000 for the year ended March 31, 2021 and decreased $21,000 for the year ended March 31, 2020. |
Foreign Currency | Foreign Currency The assets and liabilities of foreign subsidiaries, whose functional currencies are other than the United States Dollar, have been translated at current exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the year. Related translation adjustments are reported as a separate component of shareholders’ equity. Losses and gains resulting from foreign currency transactions are included in the results of operations. The Company generally does not enter into foreign currency exchange contracts to hedge its exposures related to foreign currency fluctuations and there were no foreign exchange forward contracts held by the Company at March 31, 2021 or March 31, 2020. |
Advertising Expenses | Advertising Expenses Advertising expenses are charged against earnings as incurred and are included in selling, general and administrative expenses. The Company incurred $23,000 of advertising expenses during fiscal 2021 and $165,000 during fiscal 2020. |
Sales Allowance and Marketing Support Expenses | Sales Allowance and Marketing Support Expenses Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 606, “Revenue from Contracts with Customers”. At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 606, “Revenue from Contracts with Customers.” (i) sales incentives offered to customers that meet the criteria for accrual and (ii) an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within ASC topic 606. 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. The sales and marketing support accrual activity for fiscal 2021 and fiscal 2020 was as follows (in thousands): Balance at March 31, 2019 $ 84 additions 289 usages (300 ) adjustments 26 Balance at March 31, 2020 $ 99 additions 412 usages (367 ) adjustments (53 ) Balance at March 31, 2021 $ 91 |
Interest income, net | Interest income, net The Company records interest income as earned and interest expense as incurred. The net interest income for fiscal 2021 and 2020 consists of: 2021 2020 (In thousands) Interest expense $ (7 ) $ — Interest income 158 776 Interest income, net $ 151 $ 776 |
Income Taxes | Income Taxes Deferred income taxes are recorded to account for the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets have been recorded net of an appropriate valuation allowance, to the extent management believes it is more likely than not that such assets will be realized. (See Note 5 “Income Taxes.”) Any tax penalties are recorded as part of selling, general and administrative expenses and any interest to which the Company is subject, is recorded as a part of income tax expense. Penalties and interest incurred during fiscal 2021 and fiscal 2020 were approximately nil |
Comprehensive Income | Comprehensive Income Comprehensive income is net income adjusted for foreign currency translation adjustments. |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are based upon the weighted average number of common and common equivalent shares outstanding. Outstanding stock options and warrants are treated as common stock equivalents when dilution results from their assumed exercise. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued 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 14, “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 2019-12 “Income Taxes (Topic 740) In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. This standard is required to take effect in the Company’s first quarter (June 2021) of the Company’s fiscal year ending March 31, 2022. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Property and Equipment | Depreciation of property and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture and Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Sales and Marketing Support Accrual Activity | The sales and marketing support accrual activity for fiscal 2021 and fiscal 2020 was as follows (in thousands): Balance at March 31, 2019 $ 84 additions 289 usages (300 ) adjustments 26 Balance at March 31, 2020 $ 99 additions 412 usages (367 ) adjustments (53 ) Balance at March 31, 2021 $ 91 |
Interest Income, Net | The Company records interest income as earned and interest expense as incurred. The net interest income for fiscal 2021 and 2020 consists of: 2021 2020 (In thousands) Interest expense $ (7 ) $ — Interest income 158 776 Interest income, net $ 151 $ 776 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Component of Property and Equipment | As of March 31, 2021 and 2020, property and equipment is comprised of the following: 2021 2020 (In thousands) Computer equipment and software $ 217 $ 217 Furniture and fixtures 163 167 Leasehold improvements 8 8 388 392 Less accumulated depreciation and amortization (388 ) (388 ) $ — $ 4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense | The Company’s provision for income tax expense for fiscal 2021 and fiscal 2020 was as follows: 2021 2020 (In thousands) Current: Federal $ — $ — Foreign, state and other 15 6 Deferred: Federal — 346 Foreign, state and other — 105 Provision for income tax expense $ 15 $ 457 |
Effective Rate Reflected in Provision for Income Taxes and Amounts Determined by Applying Statutory Federal Rate | The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 21% to earnings before income taxes for fiscal 2021 and fiscal 2020 is analyzed below 2021 2020 (In thousands) Statutory provision $ (832 ) $ (805 ) Foreign subsidiary (14 ) (51 ) State taxes (184 ) (267 ) Permanent differences 31 17 Adjustment to prior year taxes 399 27 Valuation allowance 615 1,536 Provision for income tax expense $ 15 $ 457 |
Components of Deferred Tax Assets Classified as Non-Current | As of March 31, 2021 and March 31, 2020, the significant components of the Company’s deferred tax assets which were classified as non-current, were as follows: 2021 2020 (In thousands) Deferred tax assets: Accounts receivable reserves $ 32 $ 38 Inventory reserves 162 164 Accruals 18 20 Property, plant and equipment and intangible assets 67 91 Net operating loss and credit carry forwards 3,237 2,588 Valuation allowance (3,516 ) (2,901 ) Total deferred tax assets $ — $ — |
State Net Operating Loss | The Company has $14.5 million of state NOLs as of March 31, 2021 as follows Loss Year (Fiscal) Included in DTA Expiration Year (Fiscal) 2016 $1.4 million 2034 2017 $0.8 million 2036 2018 $2.6 million 2037 2019 $2.7 million 2038 2020 $3.0 million 2039 2021 $4.0 million 2040 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Company's ERP Software Provider | The Company’s ERP software provider is subscription based with annual commitments as follows (in thousands). Fiscal Years Amount 2022 $ 29 2023 — 2024 — 2025 — Thereafter — Total $ 29 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Loss per Share | The following table sets forth the computation of basic and diluted loss per share for the years ended March 31, 2021 and March 31, 2020: 2021 2020 Numerator: Net loss $ (3,976 ) $ (4,307 ) Denominator: Denominator for basic and diluted loss per share — weighted average shares 21,043 21,043 Net loss per share: Basic and diluted loss per share $ (0.19 ) $ (0.20 ) |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Net Revenues and Long-Lived Assets of Company | Net revenues and long-lived assets of the Company for the fiscal years ended March 31, 2021 and March 31, 2020 are summarized below by geographic area (in thousands). Net revenues are attributed to geographic area based on the location of the customer. Year Ended March 31, 2021 U.S. Foreign Consolidated Net revenues $ 7,445 $ — $ 7,445 Long-lived assets $ 178 $ 132 $ 310 Year Ended March 31, 2020 U.S. Foreign Consolidated Net revenues $ 6,293 $ — $ 6,293 Long-lived assets $ 252 $ 293 $ 545 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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: Twelve Months Ended March 31, 2021 2020 (in thousands) Lease cost Operating lease cost $ 255 $ 254 Finance lease cost — — Amortization of right-of-use assets — — Interest on lease liabilities — — Variable lease costs — — Total lease cost 255 254 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 266 264 Operating cash flows from finance leases — — Financing cash flows from finance leases — 1 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 March 31, 2021 As of March 31, 2020 Operating leases 17.4 26.0 Finance leases 38.2 50.2 Weighted average discount rate Operating leases 7.50 % 7.50 % Finance leases 7.50 % 7.50 % |
Summary of Maturities of Lease Liabilities | As of March 31, 2021 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2022 $ 162 $ 1 2023 84 1 2024 — 1 2025 — 1 Thereafter — — Total lease payments $ 246 $ 4 Less: Imputed interest (12 ) — Total $ 234 $ 4 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Mar. 31, 2021USD ($)Derivative | Mar. 31, 2020USD ($)Derivative | |
Significant Of Accounting Policies [Line Items] | ||
Reclassified Cost And Expenses Amount | $ 1,611,500 | |
Property, plant, and equipment, net | 4,000 | |
Allowance for doubtful accounts receivable, period increase (decrease) | $ (2,400) | 2,300 |
Sales return reserve, period increase (decrease) | $ (17,000) | $ (21,000) |
Foreign exchange forward contracts held | Derivative | 0 | 0 |
Advertising expenses | $ 23,000 | $ 165,000 |
Income taxes penalties | ||
Income taxes interest | ||
Lease liabilities | 234,000 | |
Right-of-use assets | 213,000 | $ 442,000 |
Office Space | ||
Significant Of Accounting Policies [Line Items] | ||
Lease liabilities | 695,000 | |
Right-of-use assets | $ 650,000 | |
Minimum | ||
Significant Of Accounting Policies [Line Items] | ||
Credit extended periods | 10 days | |
Maximum | ||
Significant Of Accounting Policies [Line Items] | ||
Credit extended periods | 90 days | |
Microwaves | ||
Significant Of Accounting Policies [Line Items] | ||
Warranty period | one year period | |
Audio Products | ||
Significant Of Accounting Policies [Line Items] | ||
Warranty period | 90 day period |
Estimated Useful Life of Proper
Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2021 | |
Computer, Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Computer, Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 7 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Sales and Marketing Support Acc
Sales and Marketing Support Accrual Activity (Detail) - Allowance for Promotions - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning Balance | $ 99 | $ 84 |
additions | 412 | 289 |
usages | (367) | (300) |
adjustments | (53) | 26 |
Ending Balance | $ 91 | $ 99 |
Interest Income, Net (Detail)
Interest Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | ||
Interest expense | $ (7) | |
Interest income | 158 | $ 776 |
Interest income, net | $ 151 | $ 776 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Nimble Holding Company Limited | ||
Related Party Transaction [Line Items] | ||
Nimble's Ownership Interest in Emerson number of shares | 15,243,283 | |
Nimble's Ownership Interest Percentage | 72.40% | |
VACL | ||
Related Party Transaction [Line Items] | ||
Advanced payment of rental and utility fees from related parties | $ 172,000 | $ 174,000 |
Due from related parties | 0 | 0 |
VSSL | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 1,000 | 300 |
Air conditioning installation charges due | $ 5,000 | $ 6,000 |
Component of Property and Equip
Component of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property Plant And Equipment [Abstract] | ||
Computer equipment and software | $ 217 | $ 217 |
Furniture and fixtures | 163 | 167 |
Leasehold improvements | 8 | 8 |
Property, Plant and Equipment, Gross, Total | 388 | 392 |
Less accumulated depreciation and amortization | $ (388) | (388) |
Property, plant and equipment, net | $ 4 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 2,000 | $ 2,000 |
Property, plant and equipment disposed, gross book value | 4,000 | 26,000 |
Loss from disposal of property and equipment | $ 2,000 | $ 0 |
Provision for Income Tax Expens
Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | ||
Foreign, state and other | $ 15 | $ 6 |
Deferred: | ||
Federal | 346 | |
Foreign, state and other | 105 | |
Provision for income tax expense | $ 15 | $ 457 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Income Taxes [Line Items] | ||
Corporate tax rate | 21.00% | 21.00% |
Income (loss) of foreign subsidiaries before taxes | $ 123,000 | $ (425,000) |
Deferred tax valuation allowance against assets | 3,516,000 | $ 2,901,000 |
U.S. federal | ||
Schedule Of Income Taxes [Line Items] | ||
Net operating loss carry forwards, amount | $ 11,000,000 | |
U.S. federal | Earliest Tax Year | ||
Schedule Of Income Taxes [Line Items] | ||
Open tax years | 2016 | |
U.S. federal | Latest Tax Year | ||
Schedule Of Income Taxes [Line Items] | ||
Open tax years | 2019 | |
States | ||
Schedule Of Income Taxes [Line Items] | ||
Net operating loss carry forwards, amount | $ 14,500,000 | |
States | Earliest Tax Year | ||
Schedule Of Income Taxes [Line Items] | ||
Open tax years | 2011 | |
States | Latest Tax Year | ||
Schedule Of Income Taxes [Line Items] | ||
Open tax years | 2019 |
Effective Rate Reflected in Pro
Effective Rate Reflected in Provision for Income Taxes and Amounts Determined by Applying Statutory Federal Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory provision | $ (832) | $ (805) |
Foreign subsidiary | (14) | (51) |
State taxes | (184) | (267) |
Permanent differences | 31 | 17 |
Adjustment to prior year taxes | 399 | 27 |
Valuation allowance | 615 | 1,536 |
Provision for income tax expense | $ 15 | $ 457 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets Classified as Non-Current (Detail) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 32,000 | $ 38,000 |
Inventory reserves | 162,000 | 164,000 |
Accruals | 18,000 | 20,000 |
Property, plant and equipment and intangible assets | 67,000 | 91,000 |
Net operating loss and credit carry forwards | 3,237,000 | 2,588,000 |
Valuation allowance | $ (3,516,000) | $ (2,901,000) |
State Net Operating Loss (Detai
State Net Operating Loss (Detail) - States $ in Millions | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry forwards, amount | $ 14.5 |
Fiscal Year 2016 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2016 |
Net operating loss carry forwards, amount | $ 1.4 |
Net operating loss carryforwards, expiration year | 2034 |
Fiscal Year 2017 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2017 |
Net operating loss carry forwards, amount | $ 0.8 |
Net operating loss carryforwards, expiration year | 2036 |
Fiscal Year 2018 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2018 |
Net operating loss carry forwards, amount | $ 2.6 |
Net operating loss carryforwards, expiration year | 2037 |
Fiscal Year 2019 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2019 |
Net operating loss carry forwards, amount | $ 2.7 |
Net operating loss carryforwards, expiration year | 2038 |
Fiscal Year 2020 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2020 |
Net operating loss carry forwards, amount | $ 3 |
Net operating loss carryforwards, expiration year | 2039 |
Fiscal Year 2021 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2021 |
Net operating loss carry forwards, amount | $ 4 |
Net operating loss carryforwards, expiration year | 2040 |
Schedule of Company's ERP Softw
Schedule of Company's ERP Software Provider (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Leases Operating [Abstract] | |
2022 | $ 29 |
Total | $ 29 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Rent Expense | $ 92,000 | $ 97,000 |
Letters of credit issued percentage of cash collateralized basis | 100.00% | |
Outstanding letters of credit | $ 0 | 0 |
Capital expenditure | 0 | 0 |
Other commitment | 0 | 0 |
Defined contribution 401(k) retirement plan, employer contribution | $ 21,000 | $ 23,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Stockholders Equity Note [Abstract] | ||
Common shares, shares authorized | 75,000,000 | 75,000,000 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares outstanding | 21,042,652 | 21,042,652 |
Treasury stock, shares | 31,923,145 | 31,923,145 |
Preferred shares, shares issued | 3,677 | 3,677 |
Preferred shares, shares outstanding | 3,677 | 3,677 |
Preferred shares, par value | $ 0.01 | |
Preferred shares, liquidation preference | $ 3,677,000 | $ 3,677,000 |
Short Term Investments - Additi
Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule Of Investments [Line Items] | ||
Short term investments in certificates of deposit | $ 25,045 | $ 28,101 |
Cash Equivalents | ||
Schedule Of Investments [Line Items] | ||
Certificates of deposit | $ 1,000 | $ 0 |
Computation of Basic and Dilute
Computation of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (3,976) | $ (4,307) |
Denominator: | ||
Denominator for basic and diluted loss per share — weighted average shares | 21,043 | 21,043 |
Net loss per share: | ||
Basic and diluted loss per share | $ (0.19) | $ (0.20) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
License Agreements - Additional
License Agreements - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2021Agreement | |
License Agreements [Abstract] | |
Number of license agreements | 1 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unusual Risk Or Uncertainty [Line Items] | ||
Allowance for doubtful accounts | $ 2,000 | $ 4,000 |
Cash, cash equivalents and restricted cash balances in excess of FDIC-insured limits | 5,000,000 | 6,000,000 |
Maximum | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Cash and restricted cash deposit | $ 250,000 | $ 250,000 |
Customer Concentration Risk | Net Revenues | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 81.00% | 80.00% |
Customer Concentration Risk | Net Revenues | Walmart | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 37.00% | 44.00% |
Customer Concentration Risk | Net Revenues | Amazon.com | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 33.00% | 25.00% |
Customer Concentration Risk | Net Revenues | Fred Meyer | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 11.00% | 11.00% |
Product Concentration Risk | Net Revenues | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 35.00% | 35.00% |
Product Concentration Risk | Net Revenues | Audio Products | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 63.00% | 61.00% |
Credit Concentration Risk | Accounts Receivable | Walmart | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 69.00% | 45.00% |
Credit Concentration Risk | Accounts Receivable | Amazon.com | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 28.00% | 45.00% |
Supplier Concentration Risk | Products for Resale | Two Largest Factory Suppliers | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 87.00% | |
Supplier Concentration Risk | Products for Resale | Two Largest Factory Suppliers | CHINA | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 99.00% | |
Supplier Concentration Risk | Products for Resale | Supplier One [Member] | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 50.00% | |
Supplier Concentration Risk | Products for Resale | Supplier One [Member] | CHINA | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 59.00% | |
Supplier Concentration Risk | Products for Resale | Supplier Two [Member] | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 37.00% | |
Supplier Concentration Risk | Products for Resale | Supplier Two [Member] | CHINA | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 40.00% |
Net Revenues and Long-Lived Ass
Net Revenues and Long-Lived Assets of Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 7,445 | $ 6,293 |
Long-lived assets | 310 | 545 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 7,445 | 6,293 |
Long-lived assets | 178 | 252 |
Foreign | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 132 | $ 293 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Lessee Lease Description [Line Items] | ||
Operating lease, liabilities current | $ 152,000 | $ 241,000 |
Finance lease, liabilities current | 1,000 | 1,000 |
Operating lease, liabilities non-current | 82,000 | 234,000 |
Finance lease, liabilities, non-current | 3,000 | 4,000 |
Operating right-of-use assets | 213,000 | 442,000 |
Finance lease right-of-use assets | $ 3,000 | $ 5,000 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Non-cancellable lease terms | 5 months | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Non-cancellable lease terms | 4 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease cost | ||
Operating lease cost | $ 255 | $ 254 |
Total lease cost | 255 | 254 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 266 | 264 |
Financing cash flows from finance leases | 1 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 650 | |
Finance leases | $ 5 |
Leases - Summary of Information
Leases - Summary of Information Relating to Lease Term and Discount Rate (Detail) | Mar. 31, 2021 | Mar. 31, 2020 |
Weighted average remaining lease term (in months) | ||
Operating leases | 17 years 4 months 24 days | 26 years |
Finance leases | 38 years 2 months 12 days | 50 years 2 months 12 days |
Weighted average discount rate | ||
Operating leases | 7.50% | 7.50% |
Finance leases | 7.50% | 7.50% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Lessee Disclosure [Abstract] | |
Operating Leases 2022 | $ 162 |
Operating Leases 2023 | 84 |
Operating Leases Total lease payments | 246 |
Operating Leases Less: Imputed interest | (12) |
Lease liabilities | 234 |
Finance Leases 2022 | 1 |
Finance Leases 2023 | 1 |
Finance Leases 2024 | 1 |
Finance Leases 2025 | 1 |
Finance Leases Total lease payments | 4 |
Finance Leases Total | $ 4 |
Paycheck Protection Program a_2
Paycheck Protection Program and Employment Support Scheme (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Income from governmental assistance programs | $ 83,000 | ||
CARES Act Of 2020 | Paycheck Protection Program | |||
Debt Instrument [Line Items] | |||
Loan term | 2 years | ||
Interest rate, stated percentage | 1.00% | ||
Loan accrued in unpaid interest | $ 1,850 | ||
Income from governmental assistance programs | $ 83,000 | ||
CARES Act Of 2020 | Paycheck Protection Program | |||
Debt Instrument [Line Items] | |||
Proceeds from Loans | $ 204,000 | $ 204,000 |