Emerson Radio (MSN) 10-Q 15 Nov 21 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2021	Nov. 12, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2022
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
Document Quarterly Report	true
Document Transition Report	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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net revenues:
Net revenues	$ 1,859,000	$ 2,271,000	$ 3,911,000	$ 3,565,000
Costs and expenses:
Cost of sales	1,351,000	1,747,000	2,960,000	2,765,000
Selling, general and administrative expenses	1,363,000	1,564,000	2,727,000	3,041,000
Total costs and expenses	2,714,000	3,311,000	5,687,000	5,806,000
Operating loss	(855,000)	(1,040,000)	(1,776,000)	(2,241,000)
Other income:
Interest income, net	16,000	28,000	33,000	110,000
Income from governmental assistance programs	207,000	55,000	207,000	55,000
Loss before income taxes	(632,000)	(957,000)	(1,536,000)	(2,076,000)
Provision (benefit) for income tax expense		(1,000)	11,000	5,300
Net loss	$ (632,000)	$ (956,000)	$ (1,547,000)	$ (2,081,000)
Basic loss per share	$ (0.03)	$ (0.05)	$ (0.07)	$ (0.10)
Diluted loss per share	$ (0.03)	$ (0.05)	$ (0.07)	$ (0.10)
Weighted average shares outstanding
Basic	21,043	21,043	21,043	21,043
Diluted	21,043	21,043	21,043	21,043
Net Product Sales
Net revenues:
Net revenues	$ 1,794,000	$ 2,211,000	$ 3,781,000	$ 3,445,000
Licensing Revenue
Net revenues:
Net revenues	$ 65,000	$ 60,000	$ 130,000	$ 120,000

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Current Assets:
Cash and cash equivalents	$ 26,025,000	$ 5,245,000
Short term investments		25,045,000
Accounts receivable, net	1,485,000	691,000
Inventory	2,899,000	1,961,000
Prepaid purchases	453,000	361,000
Prepaid expenses and other current assets	566,000	289,000
Total Current Assets	31,428,000	33,592,000
Non-Current Assets:
Right-of-use asset-operating leases	506,000	213,000
Right-of-use asset-finance leases	3,000	3,000
Other assets	94,000	94,000
Total Non-Current Assets	603,000	310,000
Total Assets	32,031,000	33,902,000
Current Liabilities:
Accounts payable and other current liabilities	734,000	788,000
Paycheck Protection Program loan		204,000
Due to affiliate	1,000	1,000
Short-term operating lease liability	220,000	152,000
Short-term finance lease liability	1,000	1,000
Income tax payable, current portion	195,000	195,000
Deferred revenue	65,000	195,000
Total Current Liabilities	1,216,000	1,536,000
Non-Current Liabilities:
Long-term operating lease liability	302,000	82,000
Long-term finance lease liability	2,000	3,000
Income tax payable	1,613,000	1,836,000
Total Non-Current Liabilities	1,917,000	1,921,000
Total Liabilities	3,133,000	3,457,000
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, 2021 and March 31, 2021, respectively; 21,042,652 shares outstanding at September 30, 2021 and March 31, 2021, respectively	529,000	529,000
Additional paid-in capital	79,792,000	79,792,000
Accumulated deficit	(21,532,000)	(19,985,000)
Treasury stock, at cost (31,923,145 shares at September 30, 2021 and March 31, 2021, respectively)	(33,201,000)	(33,201,000)
Total Shareholders’ Equity	28,898,000	30,445,000
Total Liabilities and Shareholders’ Equity	$ 32,031,000	$ 33,902,000

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
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, 2021	Sep. 30, 2020
Cash Flows from Operating Activities:
Net (loss)	$ (1,547)	$ (2,081)
Adjustments to reconcile net loss to net cash (used) by operating activities:
Loan forgiveness from Paycheck Protection Program	(207)
Amortization of right-of-use assets	113	113
Depreciation and amortization		1
Asset allowances and reserves	71	10
Changes in assets and liabilities:
Accounts receivable	(865)	(385)
Inventory	(938)	(159)
Prepaid purchases	(92)	(251)
Prepaid expenses and other current assets	(277)	(195)
Accounts payable and other current liabilities	(54)	313
Right of use assets-operating	(403)
Short term lease liabilities	68	(13)
Long term lease liabilities	219	(106)
Income taxes payable	(223)	(197)
Deferred revenue	(130)	(120)
Net cash (used) by operating activities	(4,265)	(3,070)
Cash Flows From Investing Activities:
Net proceeds (purchases) of short-term investments	25,045	3,101
Net cash provided by investing activities	25,045	3,101
Cash Flows from Financing Activities:
Proceeds from Paycheck Protection Program loan		204
Net cash provided by financing activities		204
Net increase in cash and cash equivalents	20,780	235
Cash and cash equivalents at beginning of the year	5,245	6,276
Cash and cash equivalents at end of the year	26,025	6,511
Cash paid for:
Interest	4	1
Income taxes	$ 222	$ 197

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, 2020	$ 34,421	$ 3,310	$ 529	$ 79,792	$ (16,009)	$ (33,201)
Balance (in shares) at Mar. 31, 2020			52,965,797
Net loss	(2,081)				(2,081)
Balance at Sep. 30, 2020	32,340	3,310	$ 529	79,792	(18,090)	(33,201)
Balance (in shares) at Sep. 30, 2020			52,965,797
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
Net loss	$ (1,547)				(1,547)
Balance at Sep. 30, 2021	$ 28,898	$ 3,310	$ 529	$ 79,792	$ (21,532)	$ (33,201)
Balance (in shares) at Sep. 30, 2021	52,965,797		52,965,797

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Sep. 30, 2021
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, 2021 and the results of operations for the three and six month periods ended September 30, 2021 and September 30, 2020. 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, 2021 (“fiscal 2021”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2021. The results of operations for the three and six month periods ended September 30, 2021 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the full year ending March 31, 2022 (“fiscal 2022”). Whenever necessary, reclassifications are made to conform the prior year’s consolidated financial statements to the current year’s presentation. Recently Adopted Accounting Pronouncements 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 adoption of ASU 2019-12 had no material impact on the Company’s consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements The following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board (“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 period 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. 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.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Sep. 30, 2021
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, 2021 2020 2021 2020 Numerator: Net loss $ (632 ) $ (956 ) $ (1,547 ) $ (2,081 ) Denominator: Denominator for basic and diluted loss per share — weighted average shares 21,043 21,043 21,043 21,043 Net loss per share: Basic and diluted loss per share $ (0.03 ) $ (0.05 ) $ (0.07 ) $ (0.10 )

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Shareholders' Equity	NOTE 3 — SHAREHOLDERS’ EQUITY Outstanding capital stock at September 30, 2021 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, 2021, the Company had no options, warrants or other potentially dilutive securities outstanding.

Inventory

Inventory	6 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Inventory	NOTE 4 — INVENTORY Inventories, which consist primarily of finished goods, 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, 2021 and March 31, 2021, inventories consisted of the following (in thousands): September March Finished goods $ 2,899 $ 1,961

Income Taxes

Income Taxes	6 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 5 — INCOME TAXES At September 30, 2021, the Company had $12.5 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, 2021, the Company had approximately $16.1 million of U.S. state NOL carry forwards. The tax benefits related to these state NOL 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 $34,000 for the three months ended September 30, 2021 as compared to a loss before taxes of $22,000 for the three months ended September 30, 2020. The income of foreign subsidiaries before taxes was $52,000 for the six months ended September 30, 2021 as compared to income before taxes of nil The Company analyzed the future reasonability of recognizing its deferred tax assets at September 30, 2021. As a result, the Company concluded that a 100% valuation allowance of approximately $3,821,000 would be recorded against the assets During the three months ended September 30, 2021 and September 30, 2020, the Company recorded income tax expense of approximately nil The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of September 30, 2021, the Company’s open tax years for examination for U.S. federal tax are 2016-2021, and for U.S. states’ tax are 2015-2021. 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 September 30, 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. As of September 30, 2021, the Company had a federal tax liability of approximately $1,808,000 related to the repatriation of the Company’s undistributed earnings of its foreign subsidiaries . As of September 30, 2021, the Company’s short term portion was approximately $195,000 and the long term portion was approximately $1,613,000. As of March 31, 2021, the Company had a federal tax liability of approximately $2,031,000 related to the as required by the Tax Act The liability is payable over 8 years , the sixth is equal to 15%, the seventh is equal to 20% and the final installment is equal to 25% of the liability. As of September 30, 2021, the Company has made four of the eight installments.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Sep. 30, 2021
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, or with entities related to the Company’s Chairman of the Board. 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, 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 the three and six months ended September 30, 2021, the Company was billed approximately $43,000 and $86,000 , During the three and six months ended September 30, 2021, the Company was billed approximately $400 and $1,400, respectively, for purchases of personal protection equipment from Vigers Strategic Services Ltd (“VSSL”), which is a company related to the Company’s Chairman of the Board. Vigers Strategic Services Ltd was formerly known as Lafe Strategic Services Ltd. As of September 30, 2021 the Company owed nil

Short Term Investments

Short Term Investments	6 Months Ended
	Sep. 30, 2021
Short Term Investments [Abstract]
Short Term Investments	NOTE 7 — SHORT TERM INVESTMENTS At September 30, 2021 and March 31, 2021, the Company held short term investments in deposits totaling nil

Concentration Risk

Concentration Risk	6 Months Ended
	Sep. 30, 2021
Risks And Uncertainties [Abstract]
Concentration Risk	NOTE 8 — CONCENTRATION RISK Customer Concentration For the three months ended September 30, 2021, the Company’s three largest customers accounted for approximately 90% of the Company’s net revenues, of which Amazon accounted for 39%, Walmart accounted for 32% and Fred Meyer accounted for 19%. For the six months ended September 30, 2021, the Company’s three largest customers accounted for approximately 86% of the Company’s net revenues, of which Walmart accounted for 38%, Amazon accounted for 27% and Fred Meyer accounted for 21%. For the three months ended September 30, 2020, the Company’s three largest customers accounted for approximately 77% of the Company’s net revenues, of which Walmart accounted for 32%, Fred Meyer accounted for 23% and Amazon accounted for 22%. For the six months ended September 30, 2020, the Company’s three largest customers accounted for approximately 76% of the Company’s net revenues, of which Walmart accounted for 37%, Amazon accounted for 22% and Fred Meyer accounted for 17%. 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, 2021, 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 26% and 33%, respectively, of the Company’s gross product sales. Audio products generated approximately 73% and 67%, respectively, of the Company’s gross product sales. For the three and six months ended September 30, 2020, 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 46% and 43%, respectively, of the Company’s gross product sales. Audio products generated approximately 52% and 54%, respectively, of the Company’s gross product sales. 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 43% and 27% as of September 30, 2021, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top two customers accounted for 69% and 28% as of March 31, 2021, 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. 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 September 30, 2021 and March 31, 2021 were insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 Supplier Concentration During each of the three and six months ended September 30, 2021, the Company procured 100% of its products for resale from its two largest factory suppliers, of which 84% and 83%, respectively, was supplied by its largest supplier. During each of the three and six months ended September 30, 2020, the Company procured 100% of its products for resale from its two largest factory suppliers, of which 53% and 58%, respectively, was supplied by its largest supplier.

Leases

Leases	6 Months Ended
	Sep. 30, 2021
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 sixteen months to three 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, 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 the quarter ended September 30, 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 September 30, 2021, the Company’s current operating and finance lease liabilities were $220,000 and $1,000, respectively and its non-current operating and finance lease liabilities were $302,000 and $2,000, 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, 2021 was $506,000 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: Three Months Ended September 30, Six Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Lease cost Operating lease cost $ 63 $ 64 $ 127 $ 127 Finance lease cost — — — — Amortization of right-of-use assets — — — — Interest on lease liabilities — — — — Variable lease costs — — — — Total lease cost 63 64 127 127 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 64 67 131 133 Operating cash flows from finance leases — — — — Financing cash flows from finance leases — — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases 403 — 403 — Finance leases — — — — Information relating to the lease term and discount rate are as follows: Weighted average remaining lease term (in months) As of September 30, 2021 As of September 30, 2020 Operating leases 29.9 21.1 Finance leases 32.2 44.2 Weighted average discount rate Operating leases 7.50 % 7.50 % Finance leases 7.50 % 7.50 % As of September 30, 2021 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2022 $ 125 $ 1 2023 234 1 2024 149 1 2025 63 1 Thereafter — — Total lease payments $ 571 $ 4 Less: Imputed interest (49 ) (1 ) Total $ 522 $ 3

Paycheck Protection Program and

Paycheck Protection Program and Employment Support Scheme	6 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Paycheck Protection Program and Employment Support Scheme	NOTE 10 — PAYCHECK PROTECTION PROGRAM AND EMPLOYMENT SUPPORT SCHEME On July 5, 2021, the Company’s Paycheck Protection Program (”PPP”) loan of approximately $204,400 plus accrued interest of $2,400 was forgiven by the Small Business Administration (“SBA”). The Company recorded the impact of its PPP loan forgiveness as other income during the quarter ended September 30, 2021. During the quarter ended September 30, 2020, the Company’s Hong Kong subsidiary applied for and was granted approximately $55,000 under a governmental program called the Employment Support Scheme (“ESS”). The income realized from the PPP loan forgiveness and the amount granted under the ESS program are presented as Other Income under the description called “Income from governmental assistance programs” in the Consolidated Statements of Operations.

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	6 Months Ended
	Sep. 30, 2021
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, 2021 and the results of operations for the three and six month periods ended September 30, 2021 and September 30, 2020. 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, 2021 (“fiscal 2021”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2021.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board (“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 period 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. 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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Sep. 30, 2021
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, 2021 2020 2021 2020 Numerator: Net loss $ (632 ) $ (956 ) $ (1,547 ) $ (2,081 ) Denominator: Denominator for basic and diluted loss per share — weighted average shares 21,043 21,043 21,043 21,043 Net loss per share: Basic and diluted loss per share $ (0.03 ) $ (0.05 ) $ (0.07 ) $ (0.10 )

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Inventory	As of September 30, 2021 and March 31, 2021, inventories consisted of the following (in thousands): September March Finished goods $ 2,899 $ 1,961

Leases (Tables)

Leases (Tables)	6 Months Ended
	Sep. 30, 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: Three Months Ended September 30, Six Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Lease cost Operating lease cost $ 63 $ 64 $ 127 $ 127 Finance lease cost — — — — Amortization of right-of-use assets — — — — Interest on lease liabilities — — — — Variable lease costs — — — — Total lease cost 63 64 127 127 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 64 67 131 133 Operating cash flows from finance leases — — — — Financing cash flows from finance leases — — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases 403 — 403 — Finance leases — — — —
Summary Of Information Relating To Lease Term And Discount Rate Table Text Block	Information relating to the lease term and discount rate are as follows: Weighted average remaining lease term (in months) As of September 30, 2021 As of September 30, 2020 Operating leases 29.9 21.1 Finance leases 32.2 44.2 Weighted average discount rate Operating leases 7.50 % 7.50 % Finance leases 7.50 % 7.50 %
Summary of Maturities of Lease Liabilities	As of September 30, 2021 the maturities of lease liabilities were as follows: (in thousands) Operating Leases Finance Leases 2022 $ 125 $ 1 2023 234 1 2024 149 1 2025 63 1 Thereafter — — Total lease payments $ 571 $ 4 Less: Imputed interest (49 ) (1 ) Total $ 522 $ 3

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net loss	$ (632)	$ (956)	$ (1,547)	$ (2,081)
Denominator:
Denominator for basic and diluted loss per share — weighted average shares	21,043	21,043	21,043	21,043
Net loss per share:
Basic and diluted loss per share	$ (0.03)	$ (0.05)	$ (0.07)	$ (0.10)

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail)	Sep. 30, 2021shares
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, 2021	Mar. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 2,899	$ 1,961

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)installment	Sep. 30, 2020USD ($)	Mar. 31, 2021USD ($)
Schedule Of Income Taxes [Line Items]
Income (loss) of foreign subsidiaries before taxes	$ 34,000	$ (22,000)	$ 52,000
Deferred tax valuation allowance against assets, Percent			100.00%
Deferred tax valuation allowance against assets	3,821,000		$ 3,821,000
Provision (benefit) for income tax expense		$ (1,000)	11,000	$ 5,300
Federal tax liability	1,808,000		$ 1,808,000		$ 2,031,000
Federal tax liability payable period			8 years		8 years
Federal tax liability, Current portion	195,000		$ 195,000		$ 195,000
Federal tax liability, Non-current portion	1,613,000		$ 1,613,000		$ 1,836,000
Percentage of federal tax liability payable in first five installments			8.00%		8.00%
Percentage of federal tax liability payable in sixth installment			15.00%		15.00%
Percentage of federal tax liability payable in seventh installment			20.00%		20.00%
Percentage of federal tax liability payable in final installment			25.00%		25.00%
Number of installments for federal tax liability payable | installment			8
Number of installments of federal tax liability paid | installment			4
U.S. federal
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	12,500,000		$ 12,500,000
Operating loss carryovers, limitations on use			At September 30, 2021, the Company had $12.5 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			2016
U.S. federal | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2021
States
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	$ 16,100,000		$ 16,100,000
States | Earliest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2015
States | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2021

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Sep. 30, 2021USD ($)shares	Sep. 30, 2021USD ($)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	$ 43,000	$ 86,000
Due from related parties	800	800
VSSL
Related Party Transaction [Line Items]
Due from related parties
Air conditioning installation charges due	$ 400	$ 1,400

Short Term Investments - Additi

Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Mar. 31, 2021
Schedule Of Investments [Line Items]
Short term investments in certificates of deposit		$ 25,045
Cash Equivalents
Schedule Of Investments [Line Items]
Certificates of deposit	$ 24,100	$ 1,000

Concentration Risk - Additional

Concentration Risk - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2021
Concentration Risk [Line Items]
Cash, cash equivalents and restricted cash balances in excess of FDIC-insured limits	$ 25,800,000		$ 25,800,000		$ 5,000,000
Maximum
Concentration Risk [Line Items]
Cash and restricted cash deposit	$ 250,000		$ 250,000		$ 250,000
Customer Concentration Risk | Net Revenues | Three Largest Customers
Concentration Risk [Line Items]
Concentration risk, percentage	90.00%	77.00%	86.00%	76.00%
Customer Concentration Risk | Net Revenues | Amazon.com
Concentration Risk [Line Items]
Concentration risk, percentage	39.00%	22.00%	27.00%	22.00%
Customer Concentration Risk | Net Revenues | Walmart
Concentration Risk [Line Items]
Concentration risk, percentage	32.00%	32.00%	38.00%	37.00%
Customer Concentration Risk | Net Revenues | Fred Meyer
Concentration Risk [Line Items]
Concentration risk, percentage	19.00%	23.00%	21.00%	17.00%
Product Concentration Risk | Net Revenues | Microwave Ovens
Concentration Risk [Line Items]
Concentration risk, percentage	26.00%	46.00%	33.00%	43.00%
Product Concentration Risk | Net Revenues | Audio Products
Concentration Risk [Line Items]
Concentration risk, percentage	73.00%	52.00%	67.00%	54.00%
Credit Concentration Risk | Accounts Receivable | Customer One
Concentration Risk [Line Items]
Concentration risk, percentage			43.00%		69.00%
Credit Concentration Risk | Accounts Receivable | Customer Two
Concentration Risk [Line Items]
Concentration risk, percentage			27.00%		28.00%
Supplier Concentration Risk | Products for Resale
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Supplier Concentration Risk | Products for Resale | Two Largest Factory Suppliers
Concentration Risk [Line Items]
Concentration risk, percentage	84.00%	53.00%	83.00%	58.00%

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Lessee Lease Description [Line Items]
Operating lease, liabilities current	$ 220,000	$ 152,000
Finance lease, liabilities current	1,000	1,000
Operating lease, liabilities non-current	302,000	82,000
Finance lease, liabilities, non-current	2,000	3,000
Operating right-of-use assets	506,000	213,000
Finance lease right-of-use assets	$ 3,000	$ 3,000
Minimum
Lessee Lease Description [Line Items]
Non-cancellable lease terms	16 months
Maximum
Lessee Lease Description [Line Items]
Non-cancellable lease terms	3 years

Leases - Summary of Components

Leases - Summary of Components of Lease Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease cost
Operating lease cost	$ 63	$ 64	$ 127	$ 127
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	64	127	127
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	64	67	131	133
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	403	0	403	0
Finance leases	$ 0	$ 0	$ 0	$ 0

Leases - Summary of Information

Leases - Summary of Information Relating to Lease Term and Discount Rate (Detail)	Sep. 30, 2021	Sep. 30, 2020
Weighted average remaining lease term (in months)
Operating leases	29 months 27 days	21 months 3 days
Finance leases	32 months 6 days	44 months 6 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	Sep. 30, 2021USD ($)
Lessee Disclosure [Abstract]
Operating Leases 2022	$ 125
Operating Leases 2023	234
Operating Leases 2024	149
Operating Leases 2025	63
Operating Leases Total lease payments	571
Operating Leases Less: Imputed interest	(49)
Operating Leases Total	522
Finance Leases 2022	1
Finance Leases 2023	1
Finance Leases 2024	1
Finance Leases 2025	1
Finance Leases Total lease payments	4
Finance Leases Less: Imputed interest	(1)
Finance Leases Total	$ 3

Paycheck Protection Program a_2

Paycheck Protection Program and Employment Support Scheme (Details) - USD ($)	Jul. 05, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Income from governmental assistance programs		$ 207,000	$ 55,000	$ 207,000	$ 55,000
Paycheck Protection Program | CARES Act Of 2020
Debt Instrument [Line Items]
Amount of loan forgiven	$ 204,400
Accrued interest forgiven	$ 2,400
Income from governmental assistance programs			$ 55,000