Algorhythm (RIME) 10-Q 12 Nov 15 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Nov. 12, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Registrant Name	SINGING MACHINE CO INC
Entity Central Index Key	923,601
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	SMDM
Entity Common Stock, Shares Outstanding		38,161,635

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Current Assets
Cash	$ 445,312	$ 116,286
Accounts receivable, net of allowances of $125,390 and $174,131, respectively	16,972,702	1,466,168
Inventories, net	9,549,247	7,448,167
Prepaid expenses and other current assets	188,324	92,609
Deferred financing costs	74,077	74,077
Deferred tax asset, net	347,458	449,274
Total Current Assets	29,168,377	9,783,996
Property and equipment, net	521,423	466,571
Other non-current assets	11,394	11,394
Deferred financing costs, net of current portion	58,644	95,683
Deferred tax asset, net of current portion	1,583,403	1,856,281
Total Assets	31,343,241	12,213,925
Current Liabilities
Accounts payable	9,262,726	2,767,180
Accrued expenses	1,679,010	452,651
Revolving line of credit	8,540,889	0
Current portion of capital lease	7,462	12,628
Customer deposits	91,157	0
Obligations to customers for returns and allowances	5,410	399,419
Warranty provisions	627,531	197,873
Total Current Liabilities	24,904,106	5,712,453
Long-term capital lease, net of current portion	0	1,078
Accrued expenses, net of current portion	0	46,495
Total Liabilities	26,828,537	8,287,961
Shareholders' Equity
Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Additional paid-in capital	19,319,718	19,307,966
Accumulated deficit	(15,186,630)	(15,763,177)
Total Shareholders' Equity	4,514,704	3,925,964
Total Liabilities and Shareholders' Equity	31,343,241	12,213,925
PNC Bank [Member]
Current Assets
Due from Affiliate, Current	0	137,415
Starlight Electronics Co., Ltd [Member]
Current Liabilities
Due to related party	2,721,293	0
Cosmo Communications Canada, Ltd [Member]
Current Assets
Due from related party	420,088	0
Current Liabilities
Due to related party	0	40,256
Starlight Marketing Development, Ltd [Member] | Subordinated Debt [Member]
Current Liabilities
Due to related party	1,924,431	1,924,431
Ram Light Management, Ltd [Member]
Current Liabilities
Notes Payable, Related Party	967,544	496,496
Due to related party	583,247	583,247
Ram Light Management, Ltd [Member] | Subordinated Debt [Member]
Current Liabilities
Notes Payable, Related Party	0	603,504
Starlight R and D, Ltd [Member]
Current Liabilities
Due to related party	393,886	554,031
Starlight Consumer Electronics Co Ltd [Member]
Current Liabilities
Due to related party	23,951	208,672
Winglight Pacific, Ltd [Member]
Current Assets
Due from related party	1,171,169	0
Common Class A [Member]
Shareholders' Equity
Common stock value	0	0
Common Class B [Member]
Shareholders' Equity
Common stock value	$ 381,616	$ 381,175

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Allowance for doubtful accounts (in dollars)	$ 125,390	$ 174,131
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	38,161,635	38,117,517
Common stock, shares outstanding	38,161,635	38,117,517

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Sales	$ 21,060,584	$ 15,952,059	$ 24,527,458	$ 18,497,018
Cost of Goods Sold	16,109,943	12,790,291	18,718,396	14,819,359
Gross Profit	4,950,641	3,161,768	5,809,062	3,677,659
Operating Expenses
Selling expenses	1,831,235	1,266,767	2,288,962	1,612,034
General and administrative expenses	1,202,256	1,267,246	2,304,237	2,196,118
Depreciation	37,332	32,873	74,665	62,204
Total Operating Expenses	3,070,823	2,566,886	4,667,864	3,870,356
Income (Loss) from Operations	1,879,818	594,882	1,141,198	(192,697)
Other Expenses
Interest expense	(102,806)	(79,644)	(152,918)	(81,485)
Financing costs	(18,520)	(15,433)	(37,039)	(15,433)
Total Other Expenses	(121,326)	(95,077)	(189,957)	(96,918)
Income (Loss) Before Income Tax (Provision) Benefit	1,758,492	499,805	951,241	(289,615)
Income Tax (Provision) Benefit	(687,019)	(178,634)	(374,694)	111,257
Net Income (Loss)	$ 1,071,473	$ 321,171	$ 576,547	$ (178,358)
Income (Loss) per Common Share
Basic (in dollar per share)	$ 0.03	$ 0.01	$ 0.02	$ 0
Diluted (in dollar per share)	$ 0.03	$ 0.01	$ 0.01	$ 0
Weighted Average Common and Common Equivalent Shares:
Basic (in shares)	38,141,974	38,083,663	38,129,812	38,077,116
Diluted (in shares)	38,629,328	38,538,510	38,613,732	38,077,116

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net Income (Loss)	$ 576,547	$ (178,358)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	74,665	62,204
Amortization of deferred financing costs	37,039	15,433
Change in inventory reserve	112,440	50,000
Change in allowance for bad debts	(48,741)	63,156
Stock based compensation	12,193	42,103
Warranty provisions	429,658	292,859
Change in net deferred tax assets	374,694	(111,257)
Changes in operating assets and liabilities:
Accounts receivable	(15,457,793)	(8,059,910)
Inventories	(2,213,520)	(9,280,282)
Prepaid expenses and other current assets	(95,715)	(67,778)
Other non-current assets	0	6,236
Increase (decrease) in:
Accounts payable	6,495,546	9,439,129
Net due to related parties	744,914	726,052
Accrued expenses	1,179,864	712,285
Customer deposits	91,157	0
Obligations to customers for returns and allowances	(394,009)	(960)
Net cash used in operating activities	(8,081,061)	(6,289,088)
Cash flows from investing activities:
Purchase of property and equipment	(129,517)	(33,013)
Net cash used in investing activities	(129,517)	(33,013)
Cash flows from financing activities:
Payment of deferred financing costs	0	(222,232)
Payments on long-term capital lease	(6,244)	(5,971)
Net cash provided by financing activities	8,539,604	5,142,316
Net change in cash	329,026	(1,179,785)
Cash at beginning of period	116,286	1,354,099
Cash at end of the period	445,312	174,314
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	58,808	63,205
Ram Light Management, Ltd [Member]
Cash flows from financing activities:
Payment on note payable related party	(132,456)	0
Revolving Credit Facility [Member]
Cash flows from financing activities:
Net proceeds from revolving line of credit	$ 8,678,304	$ 5,370,519

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Accounting [Text Block]	NOTE 1 – BASIS OF PRESENTATION OVERVIEW The Singing Machine Company, Inc., a Delaware corporation (the “Company”, “SMC”, “The Singing Machine”) and its three wholly-owned subsidiaries SMC (Comercial Offshore De Macau) Limitada (“Macau Subsidiary”), SMC Logistics, Inc. (“SMC-L”) and SMC-Music, Inc.(“SMC-M”) are primarily engaged in the development, marketing, and sale of consumer karaoke audio systems, accessories, musical instruments and musical recordings. The products are sold by SMC to retailers and distributors for resale to consumers.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The condensed consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in the condensed consolidated financial statements. The accompanying unaudited financial statements for the three and six months ended September 30, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles applicable to interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements. In the opinion of management, such condensed consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair presentation of the condensed consolidated financial position and the condensed consolidated results of operations. The condensed consolidated results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet information as of March 31, 2015 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K. The interim condensed consolidated financial statements should be read in conjunction with that report. The Singing Machine makes estimates and assumptions in the ordinary course of business relating to sales returns and allowances, warranty reserves, inventory reserves and reserves for promotional incentives that affect the reported amounts of assets and liabilities and of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be determined with absolute certainty; therefore, the determination of estimates requires the exercise of judgment. Historically, past changes to these estimates have not had a material impact on the Company's financial condition. However, circumstances could change which may alter future expectations. The Singing Machine's allowance for doubtful accounts is based on management's estimates of the creditworthiness of its customers, current economic conditions and historical information, and, in the opinion of management, is believed to be an amount sufficient to respond to normal business conditions. Management sets 100 The functional currency of the Macau Subsidiary is the Hong Kong dollar. The financial statements of the subsidiary are translated to U.S. dollars using period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions and translations were not material during the periods presented. At times, the Company maintains cash in United States bank accounts that are in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured amounts of up to $ 250,000 362,146 23,794 Inventories are comprised primarily of electronic karaoke equipment, microphones and accessories, and are stated at the lower of cost or market, as determined using the first in, first out method. The Singing Machine reduces inventory on hand to its net realizable value on an item-by-item basis when it is apparent that the expected realizable value of an inventory item falls below its original cost. A charge to cost of sales results when the estimated net realizable value of specific inventory items declines below cost. Management regularly reviews the Company's investment in inventories for such declines in value. Income (loss) per common share is computed by dividing net income (loss) by the weighted average of common shares outstanding during the period. Diluted net income (loss) per share is presented as the conversion of stock options would have a dilutive effect. As of September 30, 2015 and 2014 total potential dilutive shares amounted to approximately 484,000 455,000 Revenue from the sale of equipment, accessories, musical recordings and subscriptions and third –party logistics services are recognized upon the later of: (a) the time of shipment or (b) when title passes to the customers and all significant contractual obligations and services have been satisfied and collection of the resulting receivable is reasonably assured. Net sales are comprised of gross sales net of actual and estimated future returns, discounts and volume rebates. The Company follows the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718-20, “Compensation – Stock Compensation Awards Classified as Equity”. ASC 718-20 requires all share-based payments to employees including grants of employee stock options, be measured at fair value and expensed in the condensed consolidated statements of operations over the service period (generally the vesting period). The Company uses the Black-Scholes option valuation model to value stock options. Employee stock option compensation expense for the three and nine months ended September 30, 2015 and 2014 includes the estimated fair value of options granted, amortized on a straight-line basis over the requisite service period for the entire portion of the award. For the three months ended September 30, 2015 and 2014, the stock option expense was $ 2,692 2,205 4,693 34,603 Costs incurred for producing and publishing advertising of the Company are charged to operations the first time the advertising takes place. The Company has entered into cooperative advertising agreements with its major customers that specifically indicated that the customer has to spend the cooperative advertising fund upon the occurrence of mutually agreed events. The percentage of the cooperative advertising allowance ranges from 2 9 1,237,478 821,026 1,516,834 1,020,746 Research and development costs are charged to results of operations as incurred. These expenses are shown as a component of selling, general and administrative expenses in the condensed consolidated statements of operations. For the three months ended September 30, 2015 and 2014, these amounts totaled $ 69,169 45,313 101,289 73,513 The Company adopted FASB ASC 825, which requires disclosures of information about the fair value of certain financial instruments for which it is practicable to estimate that value. For purposes of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of the Company's short-term financial instruments, including accounts receivable, accounts payable, obligations to customers for returns and allowances, warranty provision, accrued expenses and net due to related parties approximates fair value due to the relatively short period to maturity for these instruments. The Company follows the provisions of FASB ASC 740 "Accounting for Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company analyzes its deferred tax assets and liabilities at the end of each interim period and, based on management’s best estimate of its full year effective tax rate, recognizes cumulative adjustments to its deferred tax assets and liabilities. The Company’s effective tax rate for the fiscal year ending March 31, 2016 is estimated to be approximately 39 35 As of September 30, 2015 and March 31, 2015, The Singing Machine had gross deferred tax assets of approximately $ 2.6 3.0 0.7 951,000 375,000 The Company recognizes a liability for uncertain tax positions. An uncertain tax position is defined as a position in a previously filed tax return or a position expected to be taken in a future tax return that is not based on clear and unambiguous tax law and which is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. As of September 30, 2015, there were no uncertain tax positions that resulted in any adjustment to the Company’s provision for income taxes. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company currently has no liabilities recorded for accrued interest or penalties related to uncertain tax provisions. As of September 30, 2015, the Company is subject to U.S. Federal income tax examinations for the tax years ended March 31, 2012 through March 31, 2015. The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recoverable. If the undiscounted future cash flows attributable to the related assets are less than the carrying amount, the carrying amounts are reduced to fair value and an impairment loss is recognized in accordance with FASB ASC 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets." Property and equipment are stated at cost, less accumulated depreciation. Expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to their estimated useful lives using accelerated and straight-line methods. Shipping and handling costs are classified as a component of selling expenses and those billed to customers are recorded as a reduction of expense in the condensed consolidated statements of operations. Certain balances presented previously have been reclassified to conform to the financial statement presentation adopted for this period. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 which outlines a single comprehensive model for companies to use when accounting for revenue arising from contracts with customers. The core principle of the revenue recognition model is that an entity recognizes revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In order to achieve this core principle a company must apply the following steps in determining revenue recognition: · Identify the contract(s) with a customer · Identify the performance obligations in the contract. · Determine the transaction price. · Allocate the transaction price to the performance obligations in the contract. · Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this ASU were deferred by ASU 2015-14 and are now effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period with early application allowed beginning with reporting periods after December 15, 2016. Management is currently assessing whether the implementation of ASU 2014-09 and ASU 2015-14 will have any material effect on the company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In April 2015 and September 2015, the FASB issued ASU 2015-03 and ASU 2015-15, Simplifying the Presentation of Debt Issuance Costs. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The guidance in ASU 2015-11 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. The new guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period.

DUE FROM PNC BANK

DUE FROM PNC BANK	6 Months Ended
	Sep. 30, 2015
Due From PNC Bank [Abstract]
Due From Other Related Party Disclosure [Text Block]	NOTE 3 – DUE FROM PNC BANK In connection with the Company’s Revolving Line of Credit facility with PNC Bank, cash collected by PNC Bank on trade accounts receivable may exceed amounts borrowed on the Revolving Line of Credit from time to time (See Note 6 – LINE OF CREDIT). As of September 30, 2015 and March 31, 2015, PNC Bank owed the Company $ 0 137,415

INVENTORIES, NET

INVENTORIES, NET	6 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 4- INVENTORIES, NET September 30, March 31, 2015 2015 (unaudited) Finished Goods $ 8,568,358 $ 7,869,167 Inventory in Transit 1,514,329 - Inventory Reserve (533,440) (421,000) Inventories, net $ 9,549,247 $ 7,448,167

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 5 - PROPERTY AND EQUIPMENT USEFUL September 30, March 31, LIFE 2015 2015 (unaudited) Computer and office equipment 5 years $ 285,650 $ 285,650 Furniture and fixtures 5-7 years 4,312 4,312 Warehouse equipment 7 years 224,106 224,106 Molds and tooling 3-5 years 2,486,650 2,357,133 3,000,718 2,871,201 Accumulated depreciation 2,479,295 2,404,630 Property and equipment, net $ 521,423 $ 466,571 Depreciation expense for the three months ended September 30, 2015 and September 30, 2014 was $ 37,332 32,873 Depreciation expense for the six months ended September 30, 2015 and September 30, 2014 was $ 74,665 62,204

LINE OF CREDIT

LINE OF CREDIT	6 Months Ended
	Sep. 30, 2015
Line of Credit Facility [Abstract]
Debt Disclosure [Text Block]	NOTE 6 – LINE OF CREDIT PNC BANK NATIONAL ASSOCIATION On July 14, 2014, the Company executed a three-year revolving credit facility (the “Revolving Line of Credit”) with PNC Bank, National Association (“PNC”) that replaced an existing line of credit agreement with Crestmark Bank. The Revolving Line of Credit has a three year term expiring on July 14, 2017 15,000,000 7,500,000 · Up to 85% of the company’s eligible domestic and Canadian accounts receivable aged less than 60 days past due (not to exceed 90 days from invoice date, cross aged on the basis of 50% or more past due with certain specific accounts qualifying for up to 120 days from invoice date not to exceed 30 days from the due date; plus · Up to the lesser of (a) 50% of the cost of eligible inventory or (b) 75% of net orderly liquidation value percentage of eligible inventory (annual inventory appraisals required); minus · An all-time $500,000 block; minus · Applicable reserves including a dilution reserve equal to 125% of the Company’s advertising and return accrual reserves. Dilution reserve not to exceed availability generated from eligible accounts receivable. The Revolving Line of Credit includes the following sub-limits: · Letters of Credit to be issued limited to $3,000,000. · Inventory availability limited to $4,000,000. · Mandatory pay-down to $1,000,000 (excluding letters of credit) for any 30 consecutive days between February 1 and April 30. The Revolving Line of Credit must comply with the following quarterly financial covenants to avoid default: · Fixed charge coverage ratio test of 1.1:1 times measured on a rolling four quarter basis, defined as EBITDA less non-financed capital expenditures, cash dividends and distributions paid and cash taxes paid divided by the sum of interest and principal on all indebtedness. · Capital expenditures limited to $150,000 per year. Interest on the Revolving Line of Credit is accrued at 2 3.5 2 360 42,478 61,065 52,143 61,065 8,132 7,617 14,274 7,617 The Revolving Line of Credit is secured by first priority security interests in all of the named borrowers’ tangible and intangible assets as well as first priority security interests of 100 65 2,500,000 222,000 18,520 15,433 37,039 15,433 As a condition of the Revolving Line of Credit, a portion of the Company’s related-party debt with Ram Light Management, Ltd.in the amount of $ 1,100,000 The Ram Light Note bears interest at 6% per annum with quarterly payments of $150,000 (including principal and interest) payable beginning December 31, 2014. Scheduled principal and interest payments of $150,000 will only be permitted upon receipt of the Company’s current quarterly compliance certificate; the Company having met the mandatory pay-down of the Revolving Line of Credit to $1,000,000 and average excess availability for the prior 30 days (after subtraction of third party trade payables 30 days or more past due) of no less than $1,000,000 after giving effect to the payment. 150,000 17,544 12,964 34,828 12,964

LONG-TERM CAPITAL LEASE

LONG-TERM CAPITAL LEASE	6 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-term Debt [Text Block]	NOTE 7 – LONG-TERM CAPITAL LEASE On April 13, 2013, the company entered into a long-term capital leasing arrangement with Wells Fargo Equipment Finance (“Wells Fargo”) to finance the lease of two used forklift vehicles in the amount of $ 36,388 1,082 36 4.5 7,462 13,706 September 30, 2015 March 31, 2015 Total minimum lease payments Within one year $ 7,574 $ 12,984 After one year but within three years - 1,078 7,574 14,062 Interest payments relating to future periods (112) (356) Present Value of minimum lease payments $ 7,462 $ 13,706 For the three month periods ended September 30, 2015 and September 30, 2014 the amount of interest related to the capital lease was $ 107 244 249 521

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	6 Months Ended
	Sep. 30, 2015
Customer Deposits [Abstract]
Customer Deposits Disclosure [Text Block]	NOTE 8 – CUSTOMER DEPOSITS Normal credit terms to foreign customers shipped direct import from our Macau subsidiary 50% of invoice price prior to shipment with the remaining 50% of invoice price due at time of shipment. As of September 30, 2015 and March 31, 2015 there was a total of $ 91,157 0

OBLIGATIONS TO CUSTOMERS FOR RE

OBLIGATIONS TO CUSTOMERS FOR RETURNS AND ALLOWANCES	6 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	NOTE 9 - OBLIGATIONS TO CUSTOMERS FOR RETURNS AND ALLOWANCES Due to the seasonality of the business and length of time customers are given to return defective product, it is not uncommon for customers to accumulate credits from the Company’s sales and allowance programs that are in excess of unpaid invoices in accounts receivable. All credit balances in customers’ accounts receivable are reclassified to obligations to customers for returns and allowances in current liabilities on the condensed consolidated balance sheet. Customer requests for payment of a credit balance are reclassified from obligations to customers for returns and allowances to accounts payable on the condensed consolidated balance sheets. When new invoices are processed prior to settlement of the credit balance and the customer accepts settlement of open credits with new invoices, then the excess of new invoices over credits are netted in accounts receivable. As of September 30, 2015 and March 31, 2015, obligations to customers for returns and allowances reclassified from accounts receivable were $ 5,410 399,419

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 10 - COMMITMENTS AND CONTINGENCIES LEGAL MATTERS Management is currently not aware of any legal proceedings. OPERATING LEASES The Company is committed to various operating lease agreements for office and warehouse facilities in Fort Lauderdale, Florida; Ontario, California; and Macau expiring at varying dates. Rent expense for the three month periods ended September 30, 2015 and 2014 was $ 154,964 147,905 310,185 311,375 In addition, the Company maintains various warehouse equipment and computer equipment operating leases. Operating Leases For period ending September 30, 2015 $ 551,288 2016 519,258 2017 490,722 2018 524,272 2019 524,271 2020 87,379 $ 2,697,190

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders Equity Note Disclosure [Text Block]	NOTE 11- SHAREHOLDERS' EQUITY COMMON STOCK ISSUANCES On August 10, 2015, the Company issued 44,118 0.17 STOCK OPTIONS On June 1, 2001, the Board of Directors approved the 2001 Stock Option Plan (the “Plan”), which replaced the 1994 Stock Option Plan, as amended. The Plan was developed to provide a means whereby directors and selected employees, officers, consultants, and advisors of the Company were granted incentive or non-qualified stock options to purchase common stock of the Company. As of September 30, 2015, the Plan had expired and no shares were available to be issued. As of September 30, 2015 there were 1,102,000 785,000 On July 1, 2015, the Company granted 25,000 0.17 The fair value of the option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions outlined below. The expected volatility is based upon historical volatility of our stock and other contributing factors. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees and other contributing factors. ⋅ For the three and six months ended September 30, 2015: expected dividend yield 0 0.26 107.6

GEOGRAPHICAL INFORMATION

GEOGRAPHICAL INFORMATION	6 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 12 - GEOGRAPHICAL INFORMATION FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED September 30, September 30, 2015 2014 2015 2014 North America $ 19,352,542 $ 15,756,547 $ 22,426,119 $ 18,046,800 Europe 1,499,913 89,312 1,737,420 344,018 Australia 145,140 106,200 145,140 106,200 South Africa 62,989 - 218,779 - $ 21,060,584 $ 15,952,059 $ 24,527,458 $ 18,497,018 The geographic area of sales is based primarily on the location where the product is delivered.

DUE TO _ FROM RELATED PARTIES,

DUE TO / FROM RELATED PARTIES, NET	6 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 13 – DUE TO / FROM RELATED PARTIES, NET During the fiscal year ended March 31, 2015, our parent company, Starlight International Holdings Limited, was renamed to Shihua Development Company Limited (“Shihua”), due to a corporate restructuring transaction. As a result of the transaction, Shihua now holds 100 49 As of September 30, 2015 and March 31, 2015 the Company had amounts due to related parties in the amounts of $ 6,614,352 4,410,637 967,544 1,100,000 5,646,808 3,310,637 6 48,662 2,357 1,591,257 0

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure Excluding Due To Or From [Text Block]	NOTE 14 – RELATED PARTY TRANSACTIONS During the three months ended September 30, 2015 and September 30, 2014 the Company sold approximately $ 51,000 86,000 116,000 403,000 17.7 16.5 16.0 16.5 During the three months ended September 30, 2015 and September 30, 2014 the Company sold additional product to Cosmo of approximately $ 331,000 144,000 445,000 245,000 For the three and six month periods ended September 30, 2015 and 2014 the Company received approximately $ 0 117,000 The Company purchased products from SLE. The purchases from SLE for the three and six month periods ended September 30, 2015 and 2014 were approximately $ 2,810,000 0 During the three and six months ended September 30, 2015 and September 30, 2014 the Company sold approximately $ 1,171,000 973,000 21.4 16.0 The Company purchased products and services from Starlight Consumer Electronics USA, Inc., (“SCE”) a related party. The purchases from SCE for the three month periods ended September 30, 2015 and 2014 were approximately $ 73,000 222,000 155,000 1,821,000 The Company purchased products and services from Starlight R&D, Ltd, (“SLRD”) a related party. The purchases from SLRD for the three month period ended September 30, 2015 and 2014 were approximately $ 587,000 3,404,000 620,000 3,429,000 Effective April 1 2015, SMC-L entered into a service and logistics agreement with SCE, Cosmo and SLE, to provide logistics, fulfillment, and warehousing services for Shihua affiliated companies SCE, Cosmo and SLE’s domestic sales. For these services, Starlight USA, Cosmo and SLE have agreed to reimburse the Company for actual warehouse space occupied by these companies at $ 0.096 27,000 0 47,000 0 100,000 Effective April 1 2014, SMC-L entered into a service and logistics agreement with SCE, Cosmo and SLE, to provide logistics, fulfillment, and warehousing services for Shihua affiliated companies SCE, Cosmo and SLE’s domestic sales. This agreement expired on March 31, 2015. For these services, Starlight USA, Cosmo and SLE agreed to reimburse the Company for actual warehouse space occupied by these companies at $ 8 0 41,923 0 85,208

WARRANTY PROVISIONS

WARRANTY PROVISIONS	6 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Product Warranty Disclosure [Text Block]	NOTE 15 – WARRANTY PROVISIONS A return program for defective goods is negotiated with each of our wholesale customers on a year-to-year basis. Customers are either allowed to return defective goods within a specified period of time after shipment (between 6 and 9 months) or granted a “defective allowance” consisting of a fixed percentage (between 1% and 5%) off of the invoice price in lieu of returning defective products. The Company records liabilities for its return goods programs and defective goods allowance program at the time of sale for the estimated costs that may be incurred. The liability for defective goods is included in warranty provisions on the condensed consolidated balance sheets. Changes in the Company’s obligations for return and allowance programs are presented in the following table: Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Estimated return and allowance liabilities at beginning of period $ 153,074 $ 156,824 $ 197,873 $ 235,172 Costs accrued for new estimated returns and allowances 550,673 442,798 637,907 513,721 Return and allowance obligations honored (76,216) (71,591) (208,249) (220,862) Estimated return and allowance liabilities at end of period $ 627,531 $ 528,031 $ 627,531 $ 528,031

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Compensation and Employee Benefit Plans [Text Block]	NOTE 16 - EMPLOYEE BENEFIT PLANS The Company has a 401(k) plan for its employees to which the Company makes contributions at rates dependent on the level of each employee's contributions. Contributions made by the Company are limited to the maximum allowable for federal income tax purposes. The amounts charged to operations for contributions to this plan and administrative costs during the three month periods ended September 30, 2015 and 2014 totaled $11,634 and $6,971, respectively. The amounts charged to operations for contributions to this plan and administrative costs during the six month periods ended September 30, 2015 and 2014 totaled $20,893 and $16,229, respectively. The amounts are included as a component of general and administrative expense in the accompanying condensed consolidated statements of operations. The Company does not provide any post-employment benefits to retirees.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION The condensed consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in the condensed consolidated financial statements. The accompanying unaudited financial statements for the three and six months ended September 30, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles applicable to interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements. In the opinion of management, such condensed consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair presentation of the condensed consolidated financial position and the condensed consolidated results of operations. The condensed consolidated results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet information as of March 31, 2015 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K. The interim condensed consolidated financial statements should be read in conjunction with that report.
Use of Estimates, Policy [Policy Text Block]	USE OF ESTIMATES The Singing Machine makes estimates and assumptions in the ordinary course of business relating to sales returns and allowances, warranty reserves, inventory reserves and reserves for promotional incentives that affect the reported amounts of assets and liabilities and of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be determined with absolute certainty; therefore, the determination of estimates requires the exercise of judgment. Historically, past changes to these estimates have not had a material impact on the Company's financial condition. However, circumstances could change which may alter future expectations.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	COLLECTIBILITY OF ACCOUNTS RECEIVABLE The Singing Machine's allowance for doubtful accounts is based on management's estimates of the creditworthiness of its customers, current economic conditions and historical information, and, in the opinion of management, is believed to be an amount sufficient to respond to normal business conditions. Management sets 100
Foreign Currency Transactions and Translations Policy [Policy Text Block]	FOREIGN CURRENCY TRANSLATION The functional currency of the Macau Subsidiary is the Hong Kong dollar. The financial statements of the subsidiary are translated to U.S. dollars using period-end rates of exchange for assets and liabilities, and average rates of exchange for the period for revenues, costs, and expenses. Net gains and losses resulting from foreign exchange transactions and translations were not material during the periods presented.
Concentration of Credit Risk [Policy Text Block]	Concentration of Credit Risk At times, the Company maintains cash in United States bank accounts that are in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured amounts of up to $ 250,000 362,146 23,794
Inventory, Policy [Policy Text Block]	INVENTORY Inventories are comprised primarily of electronic karaoke equipment, microphones and accessories, and are stated at the lower of cost or market, as determined using the first in, first out method. The Singing Machine reduces inventory on hand to its net realizable value on an item-by-item basis when it is apparent that the expected realizable value of an inventory item falls below its original cost. A charge to cost of sales results when the estimated net realizable value of specific inventory items declines below cost. Management regularly reviews the Company's investment in inventories for such declines in value.
Earnings Per Share, Policy [Policy Text Block]	COMPUTATION OF EARNINGS PER SHARE Income (loss) per common share is computed by dividing net income (loss) by the weighted average of common shares outstanding during the period. Diluted net income (loss) per share is presented as the conversion of stock options would have a dilutive effect. As of September 30, 2015 and 2014 total potential dilutive shares amounted to approximately 484,000 455,000
Revenue Recognition, Policy [Policy Text Block]	REVENUE RECOGNITION Revenue from the sale of equipment, accessories, musical recordings and subscriptions and third –party logistics services are recognized upon the later of: (a) the time of shipment or (b) when title passes to the customers and all significant contractual obligations and services have been satisfied and collection of the resulting receivable is reasonably assured. Net sales are comprised of gross sales net of actual and estimated future returns, discounts and volume rebates.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	STOCK BASED COMPENSATION The Company follows the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718-20, “Compensation – Stock Compensation Awards Classified as Equity”. ASC 718-20 requires all share-based payments to employees including grants of employee stock options, be measured at fair value and expensed in the condensed consolidated statements of operations over the service period (generally the vesting period). The Company uses the Black-Scholes option valuation model to value stock options. Employee stock option compensation expense for the three and nine months ended September 30, 2015 and 2014 includes the estimated fair value of options granted, amortized on a straight-line basis over the requisite service period for the entire portion of the award. For the three months ended September 30, 2015 and 2014, the stock option expense was $ 2,692 2,205 4,693 34,603
Advertising Costs, Policy [Policy Text Block]	ADVERTISING Costs incurred for producing and publishing advertising of the Company are charged to operations the first time the advertising takes place. The Company has entered into cooperative advertising agreements with its major customers that specifically indicated that the customer has to spend the cooperative advertising fund upon the occurrence of mutually agreed events. The percentage of the cooperative advertising allowance ranges from 2 9 1,237,478 821,026 1,516,834 1,020,746
Research and Development Expense, Policy [Policy Text Block]	RESEARCH AND DEVELOPMENT COSTS Research and development costs are charged to results of operations as incurred. These expenses are shown as a component of selling, general and administrative expenses in the condensed consolidated statements of operations. For the three months ended September 30, 2015 and 2014, these amounts totaled $ 69,169 45,313 101,289 73,513
Fair Value of Financial Instruments, Policy [Policy Text Block]	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company adopted FASB ASC 825, which requires disclosures of information about the fair value of certain financial instruments for which it is practicable to estimate that value. For purposes of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amounts of the Company's short-term financial instruments, including accounts receivable, accounts payable, obligations to customers for returns and allowances, warranty provision, accrued expenses and net due to related parties approximates fair value due to the relatively short period to maturity for these instruments.
Income Tax, Policy [Policy Text Block]	INCOME TAXES The Company follows the provisions of FASB ASC 740 "Accounting for Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. If it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company analyzes its deferred tax assets and liabilities at the end of each interim period and, based on management’s best estimate of its full year effective tax rate, recognizes cumulative adjustments to its deferred tax assets and liabilities. The Company’s effective tax rate for the fiscal year ending March 31, 2016 is estimated to be approximately 39 35 As of September 30, 2015 and March 31, 2015, The Singing Machine had gross deferred tax assets of approximately $ 2.6 3.0 0.7 951,000 375,000 The Company recognizes a liability for uncertain tax positions. An uncertain tax position is defined as a position in a previously filed tax return or a position expected to be taken in a future tax return that is not based on clear and unambiguous tax law and which is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. As of September 30, 2015, there were no uncertain tax positions that resulted in any adjustment to the Company’s provision for income taxes. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company currently has no liabilities recorded for accrued interest or penalties related to uncertain tax provisions. As of September 30, 2015, the Company is subject to U.S. Federal income tax examinations for the tax years ended March 31, 2012 through March 31, 2015.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	LONG-LIVED ASSETS The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recoverable. If the undiscounted future cash flows attributable to the related assets are less than the carrying amount, the carrying amounts are reduced to fair value and an impairment loss is recognized in accordance with FASB ASC 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets."
Property, Plant and Equipment, Policy [Policy Text Block]	PROPERTY AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to their estimated useful lives using accelerated and straight-line methods.
Shipping and Handling Cost, Policy [Policy Text Block]	SHIPPING AND HANDLING COSTS Shipping and handling costs are classified as a component of selling expenses and those billed to customers are recorded as a reduction of expense in the condensed consolidated statements of operations.
Reclassification, Policy [Policy Text Block]	RECLASSIFICATIONS Certain balances presented previously have been reclassified to conform to the financial statement presentation adopted for this period.
Recent Accounting Pronouncements [Policy Text Block]	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09 which outlines a single comprehensive model for companies to use when accounting for revenue arising from contracts with customers. The core principle of the revenue recognition model is that an entity recognizes revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In order to achieve this core principle a company must apply the following steps in determining revenue recognition: · Identify the contract(s) with a customer · Identify the performance obligations in the contract. · Determine the transaction price. · Allocate the transaction price to the performance obligations in the contract. · Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this ASU were deferred by ASU 2015-14 and are now effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period with early application allowed beginning with reporting periods after December 15, 2016. Management is currently assessing whether the implementation of ASU 2014-09 and ASU 2015-14 will have any material effect on the company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In April 2015 and September 2015, the FASB issued ASU 2015-03 and ASU 2015-15, Simplifying the Presentation of Debt Issuance Costs. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The guidance in ASU 2015-11 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. The new guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period.

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	6 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories are comprised of the following components: September 30, March 31, 2015 2015 (unaudited) Finished Goods $ 8,568,358 $ 7,869,167 Inventory in Transit 1,514,329 - Inventory Reserve (533,440) (421,000) Inventories, net $ 9,549,247 $ 7,448,167

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	A summary of property and equipment is as follows: USEFUL September 30, March 31, LIFE 2015 2015 (unaudited) Computer and office equipment 5 years $ 285,650 $ 285,650 Furniture and fixtures 5-7 years 4,312 4,312 Warehouse equipment 7 years 224,106 224,106 Molds and tooling 3-5 years 2,486,650 2,357,133 3,000,718 2,871,201 Accumulated depreciation 2,479,295 2,404,630 Property and equipment, net $ 521,423 $ 466,571

LONG-TERM CAPITAL LEASE (Tables

LONG-TERM CAPITAL LEASE (Tables)	6 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	As of September 30, 2015 and March 31, 2015, the Company had obligations under the capital lease payable as follows: September 30, 2015 March 31, 2015 Total minimum lease payments Within one year $ 7,574 $ 12,984 After one year but within three years - 1,078 7,574 14,062 Interest payments relating to future periods (112) (356) Present Value of minimum lease payments $ 7,462 $ 13,706

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Operating Leases For period ending September 30, 2015 $ 551,288 2016 519,258 2017 490,722 2018 524,272 2019 524,271 2020 87,379 $ 2,697,190

GEOGRAPHICAL INFORMATION (Table

GEOGRAPHICAL INFORMATION (Tables)	6 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	The majority of sales to customers outside of the United States for the three and six months ended September 30, 2015 and 2014 were made by the Macau Subsidiary. Sales by geographic region for the periods presented are as follows: FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED September 30, September 30, 2015 2014 2015 2014 North America $ 19,352,542 $ 15,756,547 $ 22,426,119 $ 18,046,800 Europe 1,499,913 89,312 1,737,420 344,018 Australia 145,140 106,200 145,140 106,200 South Africa 62,989 - 218,779 - $ 21,060,584 $ 15,952,059 $ 24,527,458 $ 18,497,018

WARRANTY PROVISIONS (Tables)

WARRANTY PROVISIONS (Tables)	6 Months Ended
	Sep. 30, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability [Table Text Block]	Changes in the Company’s obligations for return and allowance programs are presented in the following table: Three Months Ended Six Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Estimated return and allowance liabilities at beginning of period $ 153,074 $ 156,824 $ 197,873 $ 235,172 Costs accrued for new estimated returns and allowances 550,673 442,798 637,907 513,721 Return and allowance obligations honored (76,216) (71,591) (208,249) (220,862) Estimated return and allowance liabilities at end of period $ 627,531 $ 528,031 $ 627,531 $ 528,031

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Accounting Policies [Line Items]
Percentage Of Reserves For Customers			100.00%
Concentration Risk Credit Risk Cash Balance in Foreign Financial Institutions	$ 362,146		$ 362,146		$ 23,794
Cooperative Advertising Allowance Minimum Percentage (in percentage)			2.00%
Cooperative Advertising Allowance Maximum Percentage (in percentage)			9.00%
Advertising Expense	1,237,478	$ 821,026	$ 1,516,834	$ 1,020,746
Research and Development Expense	69,169	45,313	101,289	$ 73,513
Deferred Tax Assets, Valuation Allowance	700,000		700,000
Deferred Tax Assets, Gross, Total	2,600,000		$ 2,600,000		$ 3,000,000
Weighted Average Number Diluted Shares Outstanding Adjustment			484,000	455,000
Income Tax Expense (Benefit)	687,019	178,634	$ 374,694	$ (111,257)
Stock or Unit Option Plan Expense	2,692	2,205	$ 4,693	34,603
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			39.00%		35.00%
Income (Loss) From Continuing Operations Before Income Taxes, Extraordinary Items, Noncontrolling Interest	1,758,492	$ 499,805	$ 951,241	$ (289,615)
United States Bank [Member]
Accounting Policies [Line Items]
Cash, FDIC Insured Amount	$ 250,000		$ 250,000

DUE FROM PNC BANK (Details Text

DUE FROM PNC BANK (Details Textual) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
PNC Bank [Member]
Due From PNC Bank [Line Items]
Due from Affiliate, Current	$ 0	$ 137,415

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Inventory [Line Items]
Finished Goods	$ 8,568,358	$ 7,869,167
Inventory in Transit	1,514,329	0
Inventory Reserve	(533,440)	(421,000)
Inventories, net	$ 9,549,247	$ 7,448,167

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,000,718	$ 2,871,201
Accumulated depreciation	2,479,295	2,404,630
Property and equipment, net	521,423	466,571
Computer and office equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 285,650	285,650
Average useful life (in years)	5 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,312	4,312
Furniture and fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	5 years
Furniture and fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	7 years
Warehouse equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 224,106	224,106
Average useful life (in years)	7 years
Molds and tooling [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,486,650	$ 2,357,133
Molds and tooling [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	3 years
Molds and tooling [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	5 years

PROPERTY AND EQUIPMENT (Detai33

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Depreciation	$ 37,332	$ 32,873	$ 74,665	$ 62,204

LINE OF CREDIT (Details Textual

LINE OF CREDIT (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Line of Credit Facility [Line Items]
Line Of Credit Facility Sub Limits Description			The Revolving Credit Facility includes the following sub-limits: Letters of Credit to be issued limited to $3,000,000.Inventory availability limited to $4,000,000.Mandatory pay-down to $1,000,000 (excluding letters of credit) for any 30 consecutive days between February 1 and April 30.
Line of Credit Facility, Description			Usage under the Revolving Credit Facility shall not exceed the sum of the following (the “Borrowing Base”): Up to 85% of the company’s eligible domestic and Canadian accounts receivable aged less than 60 days past due (not to exceed 90 days from invoice date, cross aged on the basis of 50% or more past due with certain specific accounts qualifying for up to 120 days from invoice date not to exceed 30 days from the due date; plus Up to the lesser of (a) 50% of the cost of eligible inventory or (b) 75% of net orderly liquidation value percentage of eligible inventory (annual inventory appraisals required); minus An all-time $500,000 block; minus Applicable reserves including a dilution reserve equal to 125% of the Company’s advertising and return accrual reserves. Dilution reserve not to exceed availability generated from eligible accounts receivable.
Interest Expense, Borrowings	$ 42,478	$ 61,065	$ 52,143	$ 61,065
Amortization of Financing Costs	18,520	15,433	$ 37,039	15,433
Unused lines of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.375%
Line of Credit Facility, Commitment Fee Amount	$ 8,132	7,617	$ 14,274	7,617
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period			2.00%
Line of Credit Facility, Covenant Terms			The Revolving Credit Facility must comply with the following quarterly financial covenants to avoid default: Fixed charge coverage ratio test of 1.1:1 times measured on a rolling four quarter basis, defined as EBITDA less non-financed capital expenditures, cash dividends and distributions paid and cash taxes paid divided by the sum of interest and principal on all indebtedness. Capital expenditures limited to $150,000 per year.
Debt Instrument, Maturity Date			Jul. 14, 2017
Debt Instrument, Term			360 days
Line Of Credit Facility Default Rate			2.00%
Debt Instrument, Basis Spread on Variable Rate			3.50%
First Priority Security Ownership Interest Percentage	100.00%		100.00%
First Priority Lien Percentage	65.00%		65.00%
Ram Light Management, Ltd [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Payment Terms			The Ram Light Note bears interest at 6% per annum with quarterly payments of $150,000 (including principal and interest) payable beginning December 31, 2014. Scheduled principal and interest payments of $150,000 will only be permitted upon receipt of the Companys current quarterly compliance certificate; the Company having met the mandatory pay-down of the Revolving Line of Credit to $1,000,000 and average excess availability for the prior 30 days (after subtraction of third party trade payables 30 days or more past due) of no less than $1,000,000 after giving effect to the payment.
Conversion Of Related Party Debt	$ 1,100,000		$ 1,100,000
Repayments of Lines of Credit			150,000
Starlight Marketing Development, Ltd [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Collateral Amount	2,500,000		2,500,000
Debt Instrument, Collateral Fee			222,000
Ram Light Note [Member]
Line of Credit Facility [Line Items]
Interest Expense, Related Party	$ 17,544	$ 12,964	34,828	$ 12,964
Peak Selling Season Between August 1 And December 31 [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Amount Outstanding During Period			15,000,000
Peak Selling Season Between January 1 And July 31 [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Amount Outstanding During Period			$ 7,500,000

LONG-TERM CAPITAL LEASE (Detail

LONG-TERM CAPITAL LEASE (Details) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Total minimum lease payments Within one year	$ 7,574	$ 12,984
After one year but within three years	0	1,078
Minimum Lease Payments, Sale Leaseback Transactions, Total	7,574	14,062
Interest payments relating to future periods	(112)	(356)
Present Value of minimum lease payments	$ 7,462	$ 13,706

LONG-TERM CAPITAL LEASE (Deta36

LONG-TERM CAPITAL LEASE (Details Textual) - USD ($)	Apr. 13, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Long Term Capital Lease [Line Items]
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Total		$ 7,462		$ 7,462		$ 13,706
Interest Expense, Lessee, Assets under Capital Lease		107	$ 244	249	$ 521
Wells Fargo Equipment Finance [Member]
Long Term Capital Lease [Line Items]
Capital Lease Obligations Incurred	$ 36,388
Monthly Lease Payments	$ 1,082
Lease term	36 months
Long Term Capital Lease Interest Rate	4.50%
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Total		$ 7,462		$ 7,462		$ 13,706

CUSTOMER DEPOSITS (Details Text

CUSTOMER DEPOSITS (Details Textual) - USD ($)	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Customer Deposits [Line Items]
Credit Terms of Foreign Customers Direct Import	50% of invoice price prior to shipment with the remaining 50% of invoice price due at time of shipment
Customer Deposits, Current	$ 91,157	$ 0

OBLIGATIONS TO CUSTOMERS FOR 38

OBLIGATIONS TO CUSTOMERS FOR RETURNS AND ALLOWANCES (Details Textual) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Obligations To Clients For Returns And Allowances [Line Items]
Customer Refund Liability, Current	$ 5,410	$ 399,419

COMMITMENTS AND CONTINGENCIES39

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2015USD ($)
Commitments And Contingencies [Line Items]
2,015	$ 551,288
2,016	519,258
2,017	490,722
2,018	524,272
2,019	524,271
2,020	87,379
Operating Leases, Future Minimum Payments Due	$ 2,697,190

COMMITMENTS AND CONTINGENCIES40

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense, Net	$ 154,964	$ 147,905	$ 310,185	$ 311,375

SHAREHOLDERS' EQUITY (Details T

SHAREHOLDERS' EQUITY (Details Textual) - $ / shares	3 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Mar. 31, 2015	Aug. 10, 2015
Shareholders' Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	785,000	785,000
Common Stock, Shares, Issued				44,118
Common Stock, Par Or Stated Value Per Share				$ 0.17
Vice President [Member]
Shareholders' Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			25,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.17
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.26%	0.26%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	107.60%	107.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years	3 years
Stock Option Plan 2001 [Member]
Shareholders' Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	1,102,000	1,102,000

GEOGRAPHICAL INFORMATION (Detai

GEOGRAPHICAL INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Geographical Information [Line Items]
Net Sales	$ 21,060,584	$ 15,952,059	$ 24,527,458	$ 18,497,018
North America [Member]
Geographical Information [Line Items]
Net Sales	19,352,542	15,756,547	22,426,119	18,046,800
Europe [Member]
Geographical Information [Line Items]
Net Sales	1,499,913	89,312	1,737,420	344,018
Australia [Member]
Geographical Information [Line Items]
Net Sales	145,140	145,140	106,200	106,200
South Africa [Member]
Geographical Information [Line Items]
Net Sales	$ 62,989	$ 0	$ 218,779	$ 0

DUE TO _ FROM RELATED PARTIES43

DUE TO / FROM RELATED PARTIES, NET (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Related Party Transaction [Line Items]
Due to Related Parties	$ 967,544		$ 967,544		$ 1,100,000
Due from Related Parties, Noncurrent	$ 5,646,808		$ 5,646,808		3,310,637
Shihua Development Company Limited [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	100.00%		100.00%
Starlight Affiliates [Member]
Related Party Transaction [Line Items]
Due from Related Parties, Noncurrent	$ 1,591,257		$ 1,591,257		0
Increase (Decrease) in Accounts Payable and Accrued Liabilities, Total	$ 32,820	$ 2,357	$ 48,662	$ 2,357
Debt Instrument, Interest Rate, Stated Percentage	6.00%		6.00%
koncepts International Limited [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	49.00%		49.00%
Ram Light Management, Ltd [Member]
Related Party Transaction [Line Items]
Due to Related Parties, Current	$ 583,247		$ 583,247		$ 583,247

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2016
Related Party Transaction [Line Items]
Warehouse space Square Foot Value			$ 0.096
Starlight Electronics Co., Ltd [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Other Revenues from Transactions with Related Party	$ 51,000	$ 86,000	$ 116,000	$ 403,000
Related Party Gross Margin Percentage (in percentage)	17.70%	16.50%	16.00%	16.50%
Related Party Purchases From Related Party Transaction One	$ 2,810,000	$ 0	$ 2,810,000	$ 0
Proceeds from Fees Received	0	117,000	0	117,000
Starlight Rd, Ltd [Member]
Related Party Transaction [Line Items]
Related Party Purchases From Related Party Transaction One	587,000	3,404,000	620,000	3,429,000
Cosmo Communications Usa, Inc [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Revenues from Transactions with Related Party	331,000	144,000	445,000	245,000
Winglight Pacific, Ltd [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Other Revenues from Transactions with Related Party	$ 1,171,000	$ 973,000	$ 1,171,000	$ 973,000
Related Party Gross Margin Percentage (in percentage)	21.40%	16.00%	21.40%	16.00%
SEC, Cosmo USA and Starlight Electronics USA [Member]
Related Party Transaction [Line Items]
Proceeds from Fees Received	$ 27,000		$ 47,000	$ 0
Starlight USA, Cosmo And SEC [Member]
Related Party Transaction [Line Items]
Reimbursement Revenue	$ 0	$ 41,923	$ 0	$ 85,208
Warehouse Space Per Pallet			$ 8
Starlight USA, Cosmo And SEC [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Reimbursement Revenue					$ 100,000

WARRANTY PROVISIONS (Details)

WARRANTY PROVISIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Warranty Provisions [Line Items]
Estimated return and allowance liabilities at beginning of period	$ 153,074	$ 156,824	$ 197,873	$ 235,172
Costs accrued for new estimated returns and allowances	550,673	442,798	637,907	513,721
Return and allowance obligations honored	(76,216)	(71,591)	(208,249)	(220,862)
Estimated return and allowance liabilities at end of period	$ 627,531	$ 528,031	$ 627,531	$ 528,031

WARRANTY PROVISIONS (Details Te

WARRANTY PROVISIONS (Details Textual)	6 Months Ended
	Sep. 30, 2015
Warranty Provisions [Line Items]
Standard Product Warranty Description	Customers are either allowed to return defective goods within a specified period of time after shipment (between 6 and 9 months) or granted a “defective allowance” consisting of a fixed percentage (between 1% and 5%) off of the invoice price in lieu of returning defective products.

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Administrative Expenses	$ 11,634	$ 6,971	$ 20,893	$ 16,229