Algorhythm (RIME) 10-Q 14 Feb 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2017	Feb. 14, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	SINGING MACHINE CO INC
Entity Central Index Key	923,601
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		38,282,028
Trading Symbol	SMDM
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Current Assets
Cash	$ 483,076	$ 2,305,439
Accounts receivable, net of allowances of $2,299,260 and $132,583, respectively	12,332,907	1,655,518
Due from PNC Bank		242,859
Inventories, net	7,309,847	5,426,346
Prepaid expenses and other current assets	36,795	81,278
Deferred financing costs	13,332	21,606
Total Current Assets	21,389,226	9,733,046
Property and equipment, net	515,356	412,805
Other non-current assets	11,523	11,523
Deferred financing costs, net of current portion	20,002
Deferred tax asset	902,748	1,479,209
Total Assets	22,838,855	11,636,583
Current Liabilities
Accounts payable	4,387,118	1,381,870
Current portion of bank term note payable	500,000
Accrued expenses	2,748,250	626,331
Revolving line of credit	3,465,332
Obligations to customers for returns and allowances		38,460
Warranty provisions	1,369,700	223,700
Total Current Liabilities	13,326,504	4,194,792
Bank term note payable, net of current portion	250,000
Total Liabilities	13,821,387	4,194,792
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	19,576,141	19,412,787
Accumulated deficit	(10,941,493)	(12,353,589)
Total Shareholders' Equity	9,017,468	7,441,791
Total Liabilities and Shareholders' Equity	22,838,855	11,636,583
Common Class A [Member]
Shareholders' Equity
Common stock
Common Class B [Member]
Shareholders' Equity
Common stock	382,820	382,593
Starlight Electronics Co Ltd [Member]
Current Assets
Accounts receivable related party	6,695
Current Liabilities
Due to related party	120,432
Cosmo Communications Canada,Ltd [Member]
Current Assets
Accounts receivable related party	56,470
Winglight Pacific Ltd [Member]
Current Assets
Accounts receivable related party	1,150,104
Merrygain Holding Co Ltd [Member]
Current Liabilities
Due to related party	51,316
Starlight R&D, Ltd. [Member]
Current Liabilities
Due to related party	113,872
Subordinated Debt [Member] | Starlight Marketing Development, Ltd [Member]
Current Liabilities
Due to related party	570,484	1,924,431
Subordinated related party debt - Starlight Marketing Development, Ltd., net of current portion	$ 244,883

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Allowance for doubtful accounts receivable, net	$ 2,299,260	$ 132,583
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common Class A [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued
Common stock, shares outstanding
Common Class B [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	38,282,028	38,259,303
Common stock, shares outstanding	38,282,028	38,259,303

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net Sales	$ 21,461,835	$ 16,319,804	$ 58,203,731	$ 49,308,247
Cost of Goods Sold	15,464,273	11,283,550	43,389,465	36,625,678
Gross Profit	5,997,562	5,036,254	14,814,266	12,682,569
Operating Expenses
Selling expenses	1,971,728	1,610,430	4,816,931	4,262,531
General and administrative expenses	1,574,984	1,319,871	6,941,728	4,033,853
Depreciation	66,623	39,217	153,225	126,807
Total Operating Expenses	3,613,335	2,969,518	11,911,884	8,423,191
Income from Operations	2,384,227	2,066,736	2,902,382	4,259,378
Other Expenses
Interest expense	(145,922)	(102,276)	(241,503)	(185,341)
Financing costs	(3,333)	(18,519)	(28,272)	(55,558)
Total Other Expenses	(149,255)	(120,795)	(269,775)	(240,899)
Income Before Income Tax Provision	2,234,972	1,945,941	2,632,607	4,018,479
Income Tax Provision	(1,080,142)	(633,783)	(1,220,511)	(1,332,918)
Net Income	$ 1,154,830	$ 1,312,158	$ 1,412,096	$ 2,685,561
Income per Common Share
Basic	$ 0.03	$ 0.03	$ 0.04	$ 0.07
Diluted	$ 0.03	$ 0.03	$ 0.04	$ 0.07
Weighted Average Common and Common Equivalent Shares:
Basic	38,282,028	38,244,825	38,271,946	38,210,502
Diluted	39,137,161	39,164,624	39,127,079	39,130,305

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net Income	$ 1,412,096	$ 2,685,561
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	153,225	126,807
Amortization of deferred financing costs	28,272	55,558
Change in inventory reserve	(125,000)	171,711
Change in allowance for bad debts	2,166,677	165,818
Stock based compensation	163,581	54,698
Change in net deferred tax asset	576,461	1,303,644
(Increase) decrease in:
Accounts receivable	(12,844,066)	(8,567,225)
Due from PNC Bank	242,859	184,392
Accounts receivable - related parties	(1,213,269)	(160,202)
Inventories	(1,758,501)	(1,851,520)
Prepaid expenses and other current assets	44,483	8,285
Other non-current assets		(111)
Increase (decrease) in:
Accounts payable	3,005,248	768,726
Due to related parties	285,620	(400,000)
Accrued expenses	2,121,919	1,416,529
Obligations to customers for returns and allowances	(38,460)	(117,267)
Warranty provisions	1,146,000	783,427
Net cash used in operating activities	(4,632,855)	(3,371,169)
Cash flows from investing activities:
Purchase of property and equipment	(255,776)	(110,428)
Net cash used in investing activities	(255,776)	(110,428)
Cash flows from financing activities:
Net proceeds from revolving line of credit	3,465,332	2,274,291
Proceeds from bank term note	1,000,000
Payment of bank term note	(250,000)
Proceeds from subscriptions receivable		6,400
Proceeds from stock options		11,880
Payment of deferred financing costs	(40,000)
Payment on subordinated debt - related party	(1,109,064)
Payments on capital lease		(1,078)
Net cash provided by financing activities	3,066,268	1,768,836
Net change in cash	(1,822,363)	(1,712,761)
Cash at beginning of period	2,305,439	2,116,490
Cash at end of period	483,076	403,729
Supplemental disclosures of cash flow information:
Cash paid for interest	222,649	185,341
Cash paid for income taxes	30,000
Ram Light Management, Ltd [Member]
Cash flows from financing activities:
Payment on note payable related party - Ram Light Management, Ltd.		$ (522,657)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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	9 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 nine months ended December 31, 2017 and 2016 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, 2017 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2017. The interim condensed consolidated financial statements should be read in conjunction with that report. 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. 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 in an amount sufficient to respond to normal business conditions. Management sets reserves for customers in bankruptcy and other reserves based upon historical collection experience. The Company is subject to chargebacks from customers for cooperative marketing programs, defective returns, return freight and handling charges that are deducted from open invoices and reduce collectability of open invoices. Due to Toys R Us filing for bankruptcy in September 2017, management estimated that approximately $2,000,000 of unsecured accounts receivable may be uncollectible and as a result the Company increased its reserve for doubtful accounts accordingly. On December 22, 2017, the Company reached an agreement with Toys R Us with regards to its outstanding pre-petition accounts receivable. In exchange for the Company continuing to conduct business on essentially the same terms, conditions and commitments made prior to the bankruptcy filing, Toys R Us has agreed to pay the Company $2,500,000 in full settlement of pre-petition accounts receivable of approximately $4,400,000. The $2,500,000 is to be paid in three installments, $1,500,000 due on acceptance of the agreement (payment was received on January 3, 2018), a second installment due on March 31, 2018 with the final installment of $500,000 due on emergence from bankruptcy. As of December 31, 2017 and March 31, 2017 the allowance for doubtful accounts was approximately $2,299,000 and $133,000, respectively. The allowance for doubtful accounts as of December 31, 2017 includes an amount reflecting uncollectible Toys R Us pre-petition accounts receivable. Should business conditions deteriorate or any major customer default on its obligations to the Company, this allowance may need to be significantly increased, which would have a negative impact on operations. 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 At times, the Company maintains cash in United States bank accounts that are more than the Federal Deposit Insurance Corporation insured amounts. The Company also maintains cash balances in foreign financial institutions. The amounts at foreign financial institutions at December 31, 2017 and March 31, 2017 are approximately $511,000 and $151,000, respectively. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of accounts receivable. 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. As of December 31, 2017 and March 31, 2017, the Company had inventory reserves of approximately $575,000 and $700,000, respectively, for estimated excess and obsolete inventory. 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” 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. FAIR VALUE OF FINANCIAL INSTRUMENTS We follow FASB ASC 825, Financial Instruments, 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, accrued expenses, obligations to clients for returns and allowances, and due to/from related parties approximates fair value due to the relatively short period to maturity for these instruments. The carrying amounts on the bank term note payable and the subordinated debt to Starlight Marketing Development, Ltd. (related party) approximate fair value due to the relatively short period to maturity and related interest accrued at a rate similar to market rates. The carrying amounts on the revolving line of credit approximates fair value due to the relatively short period to maturity and related interest accrued at market rates. 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. 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 income. STOCK BASED COMPENSATION The Company follows the provisions of the FASB 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 income 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 December 31, 2017 and 2016 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 December 31, 2017 and 2016, the stock option expense was approximately $48,000 and $18,000, respectively. For the nine months ended December 31, 2017 and 2016, the stock option expense was approximately $151,000 and $45,000, respectively. 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 must spend the cooperative advertising fund upon the occurrence of mutually agreed events. The percentage of the cooperative advertising allowance ranges from 2% to 10% of the purchase. The customers must advertise the Company’s products in the customer’s catalog, local newspaper and other advertising media. The customer must submit the proof of the performance (such as a copy of the advertising showing the Company’s products) to the Company to request for the allowance. The customer does not have the ability to spend the allowance at their discretion. The Company believes that the identifiable benefit from the cooperative advertising program and the fair value of the advertising benefit is equal or greater than the cooperative advertising expense. Advertising expense for the three months ended December 31, 2017 and 2016 was approximately $1,026,000 and $795,000 respectively. Advertising expense for the nine months ended December 31, 2017 and 2016 was approximately $2,650,000 and $2,562,000, respectively. As of December 31, 2017 and March 31, 2017, there was an accrual for cooperative advertising allowances of approximately $1,654,000 and $167,000, respectively. These amounts were a component of accrued expenses in the condensed consolidated balance sheets. 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 income. For the three months ended December 31, 2017 and 2016, these amounts totaled approximately $40,000 and $33,000, respectively. For the nine months ended December 31, 2017 and 2016, these amounts totaled approximately $138,000 and $102,000, respectively. 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, 2018 is estimated to be approximately 34% and includes changes in the tax rate caused by the enactment of the Tax Cut and Jobs Act enacted as explained below. The effective tax rate for the full year ended March 31, 2017 was approximately 33%. On December 22, 2017 the Tax Cuts and Jobs Act (“Tax Act”) was enacted which reduces the U.S. federal corporate tax rate from 34% to 21% effective January 1, 2018. As a result of the Tax Act we have estimated that our blended rate for the fiscal year ending March 31, 2018 will be approximately 34%. As of December 31, 2017, we have not completed our entire analysis for all of the tax effects of the Tax Act however, management has determined a reasonable estimate of the Tax Act’s effect on the value of the Company’s deferred tax assets and liabilities and has recognized an additional tax provision of approximately $328,000 during the third quarter ended December 31, 2017. We continue to analyze other aspects of the Tax Act, estimating the timing of reversals and updating our calculations which could potentially change the estimated provision amounts recognized. As of December 31, 2017 and March 31, 2017, The Singing Machine had gross deferred tax assets of approximately $903,000 and $1,479,000, respectively. 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 December 31, 2017, 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 December 31, 2017, the Company is subject to U.S. Federal income tax examinations for the tax years ended March 31, 2015 through subsequent years. COMPUTATION OF EARNINGS PER SHARE Income per common share is computed by dividing net income by the weighted average of common shares outstanding during the period. As of December, 2017 and 2016 total potential dilutive shares from common stock options amounted to approximately 2,450,000 and 1,970,000 shares, respectively. These shares were included in the computation of diluted earnings per share for the three and nine months ended December 31, 2017 and 2016. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued 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. 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 are now effective for the Company for annual reporting periods beginning April 1, 2018 including interim periods within that reporting period. Management plans to adopt ASU 2014-09 using the full retrospective method of implementation. Management has assessed the effect of implementing ASU 2014-09 to determine the effect on the Company’s financial statements. After examining the Company’s performance obligations in its contracts, most of the Company’s customers (other than distributors) have “customer acceptance rights” in that customers are allowed to return defective goods within a specified period after shipment (between 6 and 9 months) after goods have been shipped. Currently, the Company recognizes a liability for the estimated net amount of sales less related cost of goods sold of expected returned goods at the time of sale. The liability for defective goods is included in warranty provisions on the consolidated balance sheets. The implementation of ASU 2014-09 will require that the cost of the estimated returned goods be reflected as a current asset and the amount of estimated sales to be credited to the customer be recognized in liabilities on the consolidated balance sheets. In February 2016, the FASB issued ASU 2016-02, Leases.

Due from PNC Bank

Due from PNC Bank	9 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Due from PNC Bank	NOTE 3 – DUE FROM PNC BANK In connection with the Company’s revolving credit facility with PNC Bank, cash collected by PNC Bank on trade accounts receivable may exceed amounts borrowed on the revolving credit facility from time to time (See Note 7 – BANK FINANCING). As of December 31, 2017 and March 31, 2017, PNC Bank owed the Company $0 and approximately $242,000, respectively, which represented cash received by PNC Bank on accounts receivable in excess of amounts borrowed against the revolving credit facility.

Inventories, Net

Inventories, Net	9 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories, Net	NOTE 4- INVENTORIES, NET Inventories are comprised of the following components: December 31, 2017 March 31, 2017 Finished Goods $ 7,765,083 $ 6,126,346 Inventory in Transit 119,764 - Inventory Reserve (575,000 ) (700,000 ) Inventories, net $ 7,309,847 $ 5,426,346

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	NOTE 5 - PROPERTY AND EQUIPMENT, NET A summary of property and equipment is as follows: USEFUL LIFE December 31, 2017 March 31, 2017 Computer and office equipment 5 years $ 286,928 $ 285,650 Furniture and fixtures 7 years 96,718 4,312 Warehouse equipment 7 years 238,471 238,471 Molds and tooling 3-5 years 2,788,905 2,626,813 3,411,022 3,155,246 Accumulated depreciation 2,895,666 2,742,441 Property and equipment, net $ 515,356 $ 412,805 Depreciation expense for the three months ended December 31, 2017 and December 31, 2016 was approximately$67,000 and $39,000, respectively. Depreciation expense for the nine months ended December 31, 2017 and December 31, 2016 was approximately $153,000 and $127,000 respectively.

Obligations to Customers for Re

Obligations to Customers for Returns and Allowances	9 Months Ended
	Dec. 31, 2017
Payables and Accruals [Abstract]
Obligations to Customers for Returns and Allowances	NOTE 6 - 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 sheets. Client 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 client accepts settlement of open credits with new invoices, then the excess of new invoices over credits are netted in accounts receivable. As of December 31, 2017 and March 31, 2017, obligations to customers for returns and allowances reclassified from accounts receivable were $0 and approximately $38,000, respectively.

Bank Financing

Bank Financing	9 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Bank Financing	NOTE 7 – BANK FINANCING Revolving Credit Facility On June 22, 2017, the Company renewed the existing revolving credit facility (the “Revolving Credit Facility”) with PNC Bank, National Association (“PNC”) for an additional three years expiring on July 15, 2020. The outstanding loan balance cannot exceed $15,000,000 during peak selling season between August 1 and December 31 (with the ability of the Company to request an additional $5,000,000 of availability during peak selling season if required) and is reduced to a maximum of $7,500,000 between January 1 and July 31. At December 31, 2017 and March 31, 2017, the outstanding balance of the Revolving Credit Facility was approximately $3,465,000 and $0, respectively. 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 and up to 90% of eligible foreign credit insured accounts 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) 60% of the cost of eligible inventory or (b) 85% of net orderly liquidation value percentage of eligible inventory (annual inventory appraisals required); minus ● Applicable reserves including a dilution reserve equal to 100% of the Company’s advertising and return accrual reserves. Dilution reserve not to exceed availability generated from eligible accounts receivable. The Revolving Credit Facility includes the following sub-limits: ● Letters of Credit to be issued limited to $3,000,000. ● Inventory availability limited to $5,000,000. ● $500,000 eligible in-transit inventory sublimit within the $5,000,000 total inventory. ● Mandatory pay-down to $1,000,000 (excluding letters of credit) for any 30 consecutive days between February 1 and April 30. 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 $300,000 per year. As of December 31, 2017, the Company was in compliance with all covenants. Interest on the Revolving Line of Credit is accrued at .75% per annum over PNC’s announced prime rate with an option for the Company to elect the 1, 2 or 3 month fully absorbed PNC LIBOR Rate plus 2.75% per annum with a default rate of 2% over the applicable rate. There is an unused facility fee equal to .375% per annum on the unused portion of the Revolving Credit Facility which will be calculated on the basis of a 360 day year for the actual number of days elapsed and will be payable quarterly in arrears. During the three months ended December 31, 2017 and 2016 the Company incurred interest expense of $114,370 and $89,512, respectively, on amounts borrowed against the Revolving Credit Facility. During the nine months ended December 31, 2017 and 2016, the Company incurred interest expense of $188,413 and $143,138 respectively on amounts borrowed against the Revolving Credit Facility. During the three months ended December 31, 2017 and 2016, the Company incurred an unused facility fee of $5,481 and $8,027, respectively on the unused portion of the Revolving Credit Facility. During the nine months ended December 31, 2017 and 2016, the Company incurred an unused facility fee of $19,559 and $23,291 respectively on the unused portion of the Revolving Credit Facility. 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% of member or ownership interests of any of its domestic existing or newly formed subsidiaries and first priority lien on up to 65% of the borrowers’ domestic subsidiary’s existing or subsequently formed or acquired foreign subsidiaries. The Revolving Credit Facility is also secured by a related-party debt subordination agreement with Starlight Marketing Development, Ltd. in the amount of approximately $815,000. Costs associated with renewal of the Revolving Credit Facility of approximately $40,000 were deferred and are being amortized over the term of the agreement. During the three months ended December 31, 2017 and 2016 the Company incurred amortization expense of approximately $3,000 and $19,000, respectively, associated with the amortization of deferred financing costs from the original Revolving Credit Facility. During the nine months ended December 31, 2017 and 2016, the Company incurred amortization expense of approximately $28,000 and $56,000, respectively. Term Note Payable In connection with the amendments above and in addition to the maximum availability limits on the Revolving Line of Credit, the agreement also includes a two-year term note (“Term Note”) in the amount of $1,000,000 the proceeds of which were used to pay down a portion of the subordinated related party debt of approximately $1,924,000 in June 2017. The Term Note bears interest at 1.75% per annum over PNC’s announced prime rate or 1, 2, or 3 month PNC LIBOR Rate plus 3.75%. The Term Note is payable in quarterly installments of $125,000 plus accrued interest with the first installment paid on August 1, 2017. At December 31, 2017 and March 31, 2017, the outstanding balance on the Term Note was $750,000 and $0, respectively. During the three months ended December 31, 2017 and 2016 the Company incurred interest expense of $9,560 and $0 respectively on the Term Note. During the nine months ended December 31, 2017 and 2016 the Company incurred interest expense of $17,170 and $0 respectively on the Term Note. The subordination agreement has been amended reducing the amount of related party subordinated debt to the remaining amount due of approximately $815,000. Provision has also been made to allow repayment of the remaining $815,000 in quarterly installments of $123,000 including interest accrued at 6% per annum commencing September 30, 2017. Payments of $123,000 are only permitted upon receipt of the Company’s quarterly compliance certificate; the Company having met the mandatory pay-down of the Revolving Credit Facility 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. As part of the Conditions to Installment Payment of the subordinated debt, payments not made under this note that cannot be made as a result of the foregoing prohibition shall not be deemed an Event of Default and can be made as soon as the Company is able to demonstrate that it meets the liquidity requirements defined above. The installment payment of $123,000 due on December 31, 2017 was not made due to the Toys R Us bankruptcy’s unfavorable effect on cash flow. During the three months ended December 31, 2017 and 2016 the Company incurred interest expense of $12,269 and $0 respectively on the related party subordinated debt. During the nine months ended December 31, 2017 and 2016 the Company incurred interest expense of $26,228 and $0 respectively on the related party subordinated debt.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 - COMMITMENTS AND CONTINGENCIES LEGAL MATTERS Management is currently not aware of any legal proceedings. OPERATING LEASES The Company has 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 months ended December 31, 2017 and 2016 was approximately $177,000 and $159,000, respectively. Rent expense for the nine months ended December 31, 2017 and 2016 was approximately $500,000 and $480,000, respectively. In addition, the Company maintains various warehouse equipment and office equipment operating leases. Future minimum lease payments under property and equipment leases with terms exceeding one year as of December 31, 2017 are as follows: Operating Leases For period ending December 31, 2018 $ 592,410 2019 631,131 2020 459,580 2021 113,368 2022 and beyond 267,779 $ 2,064,268

Stock Options

Stock Options	9 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stock Options	NOTE 9 - STOCK OPTIONS A summary of stock option activity for the nine months ended December 31, 2017 is summarized below: December 31, 2017 Number of Options Weighted Average Exercise Price Stock Options: Balance at beginning of period 1,970,000 $ 0.19 Granted 480,000 0.49 Exercised - - Forfeited - - Balance at end of period 2,450,000 $ 0.23 Options exercisable at end of period 1,970,000 $ 0.17 The following table summarizes information about employee stock options outstanding at December 31, 2017: Range of Exercise Price Number Outstanding at December 31, 2017 Weighted Average Remaining Contractural Life Weighted Average Exercise Price Number Exercisable at December 31, 2017 Weighted Average Exercise Price $.03 - $.33 1,850,000 4.8 $ 0.15 1,850,000 $ 0.15 $.45 - $.93 600,000 5.6 $ 0.48 120,000 $ 0.45 2,450,000 1,970,000

Geographical Information

Geographical Information	9 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Geographical Information	NOTE 10 - GEOGRAPHICAL INFORMATION Sales to customers outside of the United States for the three and nine months ended December 31, 2017 and 2016 were made by the Macau Subsidiary. Sales by geographic region for the periods presented are as follows: FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED December 31, December 31, 2017 2016 2017 2016 North America $ 20,534,288 $ 16,197,334 $ 54,163,819 $ 46,675,579 Europe 927,547 122,470 3,943,299 2,612,097 South Africa - - 96,613 20,571 $ 21,461,835 $ 16,319,804 $ 58,203,731 $ 49,308,247 The geographic area of sales is based primarily on the location where the product is delivered.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 11 – RELATED PARTY TRANSACTIONS DUE TO/FROM RELATED PARTIES On December 31, 2017 and March 31, 2017, in the aggregate the Company had approximately $1,213,000 and $0, respectively, due from related parties for goods and services sold to these companies. On December 31, 2017 and March 31, 2017, the Company had amounts due to other related party companies in the amounts of approximately $286,000 and $0 for engineering fees, storage and administrative services provided to the Company by these related parties. SUBORDINATED DEBT In connection with the Revolving Credit Facility the Company was required to subordinate related party debt to Starlight Marketing Development, Ltd. (“subordinated debt”) in the amount of approximately $1,924,000. The Revolving Credit Facility renewal agreement includes a Term Note in the amount of $1,000,000, the proceeds of which were used to pay down a portion of the subordinated debt. The remaining subordinated debt of approximately $924,000 bears interest at 6% and is scheduled to be paid in quarterly installments of $123,000 which include interest and commenced September 30, 2017. With the current renewal agreement expiring on July 15, 2020 the subordinated debt has been classified as a current portion of approximately$570,000 and a long-term portion of $245,000 as of December 31, 2017 on the condensed consolidated balance sheets. Since the original agreement expired on July 14, 2017 the subordinated related party debt was classified as a current liability as of March 31, 2017 on the condensed consolidated balance sheets. The installment payment of $123,000 due on December 31, 2017 was not made due to the Toys R Us bankruptcy’s unfavorable effect on cash flow. During the three months ended December 31, 2017 and 2016 the Company incurred interest expense of approximately $12,000 and $0, respectively, related to the subordinated debt. During the nine months ended December 31, 2017 and 2016 the Company incurred interest expense of approximately $26,000 and $0, respectively, related to the subordinated debt. TRADE During the three months ended December 31, 2017 and December 31, 2016 the Company sold approximately $0 and $236,000, respectively to Winglight Pacific, Ltd. (“Winglight”), a related party, at a discounted price, similar to prices granted to major direct import customers shipped internationally with freight prepaid. The average gross profit margin on sales to Winglight for the three months ended December 31, 2017 and December 31, 2016 was NA and 20.1%, respectively. During the nine months ended December 31, 2017 and December 31, 2016 the Company sold approximately $1,462,000 and $1,430,000, respectively to Winglight at a discounted price, similar to prices granted to major direct import customers shipped internationally with freight prepaid. The average gross profit margin on sales to Winglight for the nine months ended December 31, 2017 and December, 2016 was 21.8% and 21.4%, respectively. The product was shipped to Cosmo Communications of Canada (“Cosmo”), another related company and the Company’s primary distributor of its products to Canada. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of income. During the three months ended December 31, 2017 and December 31, 2016 the Company sold approximately $210,000 and $55,000, respectively of product to Cosmo from its California warehouse facility. During the nine months ended December 31, 2017 and December 31, 2016 the Company sold approximately $533,000 and $373,000, respectively of product to Cosmo from its California warehouse facility. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of income. The Company incurred expenses for services and royalties from Starlight R&D, Ltd, (“SLRD”) a related party. The purchases from SLRD for the three months ended December 31, 2017 and 2016 were approximately $117,000 and $7,000, respectively. The purchases from SLRD for the nine months ended December 31, 2017 and 2016 were approximately $117,000 and $30,000, respectively. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of income. The Company purchased products and services from Starlight Electronics Co. Ltd (“SLE”). The purchases from SLE for the three months ended December 31, 2017 and 2016 were approximately $131,000 and $0, respectively. The purchases from SLE for the nine months ended December 31, 2017 and 2016 were approximately $270,000 and $998,000, respectively. These amounts were included as a component of cost of goods sold in the accompanying condensed consolidated statements of income. The Company purchased services from Starlight Consumer Electronics USA, Inc., (“SCE”) a related party. The purchases from SCE for the three months ended December 31, 2017 and 2016 were approximately $0 and $38,000, respectively. The purchases from SCE for the nine months ended December 31, 2017 and 2016 were approximately $79,000 and $136,000, respectively. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of income. The Company purchased services from Merrygain Holding Co. Ltd, (“Merrygain”) a related party. The purchases from Merrygain for both of the three month periods ended December 31, 2017 and 2016 were approximately $39,000. The purchases from Merrygain for both of the nine month periods ended December 31, 2017 and 2016 were approximately $115,000. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of income. The Company has annually renewable service and logistics agreements with affiliates of China Sinostar Group Co. Ltd. (“Sinostar”) The affiliates pay the Company for services based on actual warehouse space occupied. For the three months ended December 31, 2017 and 2016, the Company received approximately $0 and $12,000 respectively, in service fees from affiliates. For the nine months ended December 31, 2017 and 2016, the Company received approximately $18,000 and $53,000, respectively, in service fees from affiliates. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of income.

Warranty Provisions

Warranty Provisions	9 Months Ended
	Dec. 31, 2017
Product Warranties Disclosures [Abstract]
Warranty Provisions	NOTE 12 – 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 after shipment (between 6 and 9 months) or granted a “defective allowance” consisting of a fixed percentage (between 1% and 5%) off 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 warranty provision are presented in the following table: Nine Months Ended December 31, December 31, 2017 2016 Estimated warranty provision at beginning of period $ 223,700 $ 292,500 Costs accrued for future estimated returns 1,745,463 1,263,733 Returns received (599,463 ) (480,306 ) Estimated warranty provision at end of period $ 1,369,700 $ 1,075,927

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Shareholders' Equity	NOTE 13- SHAREHOLDERS’ EQUITY COMMON STOCK ISSUANCES On August 1, 2017, the Company issued 22,725 shares of its common stock to our Board of Directors at $0.55 per share, pursuant to our annual director compensation plan for the fiscal year ending March 31, 2017. The Company recorded director compensation of $0 and approximately $13,000 during the three and nine months ended December 31, 2017.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
Employee Benefit Plans	NOTE 14 - 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 months ended December 31, 2017 and 2016 totaled approximately $15,000 and $12,000, respectively. The amounts charged to operations for contributions to this plan and administrative costs during the nine months ended December 31, 2017 and 2016 totaled approximately $39,000 and $34,000, respectively. The amounts are included as a component of general and administrative expense in the accompanying condensed consolidated statements of income. The Company does not provide any post-employment benefits to retirees.

Concentration of Sales Risk

Concentration of Sales Risk	9 Months Ended
	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Concentration of Sales Risk	NOTE 15 – CONCENTRATION OF SALES RISK The Company generates most of its revenue from retailers of products in the United States with a significant amount of sales concentrated with several large customers the loss of which could have an adverse impact on the financial position of the Company. Revenues derived from the Company’s five largest customers for the three months ended December 31, 2017 and 2016 were approximately 80% and 92% respectively, of total net revenues. Revenues derived from the Company’s top five customers for the nine months ended December 31, 2017 and 2016 were approximately 74% and 84% of total net revenues, respectively. Toys R Us was one of the Company’s top five customers for the three and nine months ended December 31, 2017 and 2016. For the three months ended December 31, 2017 and 2016, Toys R Us accounted for approximately 17% and 20% of net sales, respectively. For the nine months ended December 31, 2017 and 2016, Toys R Us accounted for approximately 17% and 21% of net sales, respectively.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	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 nine months ended December 31, 2017 and 2016 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, 2017 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2017. The interim condensed consolidated financial statements should be read in conjunction with that report.
Use of Estimates	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.
Collectibility of Accounts Receivable	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 in an amount sufficient to respond to normal business conditions. Management sets reserves for customers in bankruptcy and other reserves based upon historical collection experience. The Company is subject to chargebacks from customers for cooperative marketing programs, defective returns, return freight and handling charges that are deducted from open invoices and reduce collectability of open invoices. Due to Toys R Us filing for bankruptcy in September 2017, management estimated that approximately $2,000,000 of unsecured accounts receivable may be uncollectible and as a result the Company increased its reserve for doubtful accounts accordingly. On December 22, 2017, the Company reached an agreement with Toys R Us with regards to its outstanding pre-petition accounts receivable. In exchange for the Company continuing to conduct business on essentially the same terms, conditions and commitments made prior to the bankruptcy filing, Toys R Us has agreed to pay the Company $2,500,000 in full settlement of pre-petition accounts receivable of approximately $4,400,000. The $2,500,000 is to be paid in three installments, $1,500,000 due on acceptance of the agreement (payment was received on January 3, 2018), a second installment due on March 31, 2018 with the final installment of $500,000 due on emergence from bankruptcy. As of December 31, 2017 and March 31, 2017 the allowance for doubtful accounts was approximately $2,299,000 and $133,000, respectively. The allowance for doubtful accounts as of December 31, 2017 includes an amount reflecting uncollectible Toys R Us pre-petition accounts receivable. Should business conditions deteriorate or any major customer default on its obligations to the Company, this allowance may need to be significantly increased, which would have a negative impact on operations.
Foreign Currency Translation	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	Concentration of Credit Risk At times, the Company maintains cash in United States bank accounts that are more than the Federal Deposit Insurance Corporation insured amounts. The Company also maintains cash balances in foreign financial institutions. The amounts at foreign financial institutions at December 31, 2017 and March 31, 2017 are approximately $511,000 and $151,000, respectively. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of accounts receivable.
Inventory	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. As of December 31, 2017 and March 31, 2017, the Company had inventory reserves of approximately $575,000 and $700,000, respectively, for estimated excess and obsolete inventory.
Long-Lived Assets	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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.”
Property and Equipment	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.
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS We follow FASB ASC 825, Financial Instruments, 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, accrued expenses, obligations to clients for returns and allowances, and due to/from related parties approximates fair value due to the relatively short period to maturity for these instruments. The carrying amounts on the bank term note payable and the subordinated debt to Starlight Marketing Development, Ltd. (related party) approximate fair value due to the relatively short period to maturity and related interest accrued at a rate similar to market rates. The carrying amounts on the revolving line of credit approximates fair value due to the relatively short period to maturity and related interest accrued at market rates.
Revenue Recognition	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.
Shipping and Handling Costs	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 income.
Stock Based Compensation	STOCK BASED COMPENSATION The Company follows the provisions of the FASB 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 income 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 December 31, 2017 and 2016 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 December 31, 2017 and 2016, the stock option expense was approximately $48,000 and $18,000, respectively. For the nine months ended December 31, 2017 and 2016, the stock option expense was approximately $151,000 and $45,000, respectively.
Advertising	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 must spend the cooperative advertising fund upon the occurrence of mutually agreed events. The percentage of the cooperative advertising allowance ranges from 2% to 10% of the purchase. The customers must advertise the Company’s products in the customer’s catalog, local newspaper and other advertising media. The customer must submit the proof of the performance (such as a copy of the advertising showing the Company’s products) to the Company to request for the allowance. The customer does not have the ability to spend the allowance at their discretion. The Company believes that the identifiable benefit from the cooperative advertising program and the fair value of the advertising benefit is equal or greater than the cooperative advertising expense. Advertising expense for the three months ended December 31, 2017 and 2016 was approximately $1,026,000 and $795,000 respectively. Advertising expense for the nine months ended December 31, 2017 and 2016 was approximately $2,650,000 and $2,562,000, respectively. As of December 31, 2017 and March 31, 2017, there was an accrual for cooperative advertising allowances of approximately $1,654,000 and $167,000, respectively. These amounts were a component of accrued expenses in the condensed consolidated balance sheets.
Research and Development Costs	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 income. For the three months ended December 31, 2017 and 2016, these amounts totaled approximately $40,000 and $33,000, respectively. For the nine months ended December 31, 2017 and 2016, these amounts totaled approximately $138,000 and $102,000, respectively.
Income Taxes	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, 2018 is estimated to be approximately 34% and includes changes in the tax rate caused by the enactment of the Tax Cut and Jobs Act enacted as explained below. The effective tax rate for the full year ended March 31, 2017 was approximately 33%. On December 22, 2017 the Tax Cuts and Jobs Act (“Tax Act”) was enacted which reduces the U.S. federal corporate tax rate from 34% to 21% effective January 1, 2018. As a result of the Tax Act we have estimated that our blended rate for the fiscal year ending March 31, 2018 will be approximately 34%. As of December 31, 2017, we have not completed our entire analysis for all of the tax effects of the Tax Act however, management has determined a reasonable estimate of the Tax Act’s effect on the value of the Company’s deferred tax assets and liabilities and has recognized an additional tax provision of approximately $328,000 during the third quarter ended December 31, 2017. We continue to analyze other aspects of the Tax Act, estimating the timing of reversals and updating our calculations which could potentially change the estimated provision amounts recognized. As of December 31, 2017 and March 31, 2017, The Singing Machine had gross deferred tax assets of approximately $903,000 and $1,479,000, respectively. 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 December 31, 2017, 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 December 31, 2017, the Company is subject to U.S. Federal income tax examinations for the tax years ended March 31, 2015 through subsequent years.
Computation of Earnings Per Share	COMPUTATION OF EARNINGS PER SHARE Income per common share is computed by dividing net income by the weighted average of common shares outstanding during the period. As of December, 2017 and 2016 total potential dilutive shares from common stock options amounted to approximately 2,450,000 and 1,970,000 shares, respectively. These shares were included in the computation of diluted earnings per share for the three and nine months ended December 31, 2017 and 2016.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued 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. 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 are now effective for the Company for annual reporting periods beginning April 1, 2018 including interim periods within that reporting period. Management plans to adopt ASU 2014-09 using the full retrospective method of implementation. Management has assessed the effect of implementing ASU 2014-09 to determine the effect on the Company’s financial statements. After examining the Company’s performance obligations in its contracts, most of the Company’s customers (other than distributors) have “customer acceptance rights” in that customers are allowed to return defective goods within a specified period after shipment (between 6 and 9 months) after goods have been shipped. Currently, the Company recognizes a liability for the estimated net amount of sales less related cost of goods sold of expected returned goods at the time of sale. The liability for defective goods is included in warranty provisions on the consolidated balance sheets. The implementation of ASU 2014-09 will require that the cost of the estimated returned goods be reflected as a current asset and the amount of estimated sales to be credited to the customer be recognized in liabilities on the consolidated balance sheets. In February 2016, the FASB issued ASU 2016-02, Leases.

Inventories, Net (Tables)

Inventories, Net (Tables)	9 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are comprised of the following components: December 31, 2017 March 31, 2017 Finished Goods $ 7,765,083 $ 6,126,346 Inventory in Transit 119,764 - Inventory Reserve (575,000 ) (700,000 ) Inventories, net $ 7,309,847 $ 5,426,346

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	A summary of property and equipment is as follows: USEFUL LIFE December 31, 2017 March 31, 2017 Computer and office equipment 5 years $ 286,928 $ 285,650 Furniture and fixtures 7 years 96,718 4,312 Warehouse equipment 7 years 238,471 238,471 Molds and tooling 3-5 years 2,788,905 2,626,813 3,411,022 3,155,246 Accumulated depreciation 2,895,666 2,742,441 Property and equipment, net $ 515,356 $ 412,805

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under property and equipment leases with terms exceeding one year as of December 31, 2017 are as follows: Operating Leases For period ending December 31, 2018 $ 592,410 2019 631,131 2020 459,580 2021 113,368 2022 and beyond 267,779 $ 2,064,268

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Summary of Stock Option Activity	A summary of stock option activity for the nine months ended December 31, 2017 is summarized below: December 31, 2017 Number of Options Weighted Average Exercise Price Stock Options: Balance at beginning of period 1,970,000 $ 0.19 Granted 480,000 0.49 Exercised - - Forfeited - - Balance at end of period 2,450,000 $ 0.23 Options exercisable at end of period 1,970,000 $ 0.17
Schedule of Employee Stock Options Outstanding	The following table summarizes information about employee stock options outstanding at December 31, 2017: Range of Exercise Price Number Outstanding at December 31, 2017 Weighted Average Remaining Contractural Life Weighted Average Exercise Price Number Exercisable at December 31, 2017 Weighted Average Exercise Price $.03 - $.33 1,850,000 4.8 $ 0.15 1,850,000 $ 0.15 $.45 - $.93 600,000 5.6 $ 0.48 120,000 $ 0.45 2,450,000 1,970,000

Geographical Information (Table

Geographical Information (Tables)	9 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	Sales by geographic region for the periods presented are as follows: FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED December 31, December 31, 2017 2016 2017 2016 North America $ 20,534,288 $ 16,197,334 $ 54,163,819 $ 46,675,579 Europe 927,547 122,470 3,943,299 2,612,097 South Africa - - 96,613 20,571 $ 21,461,835 $ 16,319,804 $ 58,203,731 $ 49,308,247

Warranty Provisions (Tables)

Warranty Provisions (Tables)	9 Months Ended
	Dec. 31, 2017
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	Changes in the Company’s warranty provision are presented in the following table: Nine Months Ended December 31, December 31, 2017 2016 Estimated warranty provision at beginning of period $ 223,700 $ 292,500 Costs accrued for future estimated returns 1,745,463 1,263,733 Returns received (599,463 ) (480,306 ) Estimated warranty provision at end of period $ 1,369,700 $ 1,075,927

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Dec. 22, 2017	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Accounting Policies [Line Items]
Unsecured accounts receivable			$ 2,000,000		$ 2,000,000
Payment agreed to settlement of pre-petition accounts receivable	$ 2,500,000	$ 2,500,000
Pre-petition accounts receivable	4,400,000	$ 4,400,000
Allowance for doubtful accounts receivable net			2,299,260		2,299,260		$ 132,583
Foreign financial institutions actual deposits			511,000		511,000		151,000
Inventory reserves			575,000		575,000		700,000
Stock option expense			48,000	$ 18,000	151,000	$ 45,000
Advertising expense			1,026,000	795,000	2,650,000	2,562,000
Accrual cooperative advertising allowances			1,654,000		1,654,000		$ 167,000
Research and development expense			40,000	$ 33,000	138,000	$ 102,000
Income tax effective tax rate							33.00%
Additional tax provision					328,000
Deferred tax assets, gross			$ 903,000		$ 903,000		$ 1,479,000
Percentage of tax benefits recognized likelihood of being realized					greater than 50%
Potential dilutive shares not included from computation of loss per common shares					2,450,000	1,970,000
Minimum [Member]
Accounting Policies [Line Items]
Cooperative advertising allowance, percentage					2.00%
Income tax effective tax rate		21.00%
Maximum [Member]
Accounting Policies [Line Items]
Cooperative advertising allowance, percentage					10.00%
Income tax effective tax rate		34.00%
Final Installment [Member]
Accounting Policies [Line Items]
Payment received on accounts receivable	$ 500,000
January 3, 2018 [Member]
Accounting Policies [Line Items]
Payment received on accounts receivable					$ 1,500,000
March 31, 2018 [Member]
Accounting Policies [Line Items]
Income tax effective tax rate					34.00%

Due from PNC Bank (Details Narr

Due from PNC Bank (Details Narrative) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Related Party Transactions [Abstract]
Due from PNC Bank		$ 242,859

Inventories, Net - Schedule of

Inventories, Net - Schedule of Inventory (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Inventory Disclosure [Abstract]
Finished Goods	$ 7,765,083	$ 6,126,346
Inventory in Transit	119,764
Inventory Reserve	(575,000)	(700,000)
Inventories, net	$ 7,309,847	$ 5,426,346

Property and Equipment, Net (De

Property and Equipment, Net (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 67,000	$ 39,000	$ 153,225	$ 126,807

Property and Equipment, Net - S

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($)	9 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,411,022	$ 3,155,246
Accumulated depreciation	2,895,666	2,742,441
Property and equipment, net	515,356	412,805
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 286,928	285,650
Average useful life (in years)	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 96,718	4,312
Average useful life (in years)	7 years
Warehouse Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 238,471	238,471
Average useful life (in years)	7 years
Molds and Tooling [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,788,905	$ 2,626,813
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

Obligations to Customers for 33

Obligations to Customers for Returns and Allowances (Details Narrative) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Payables and Accruals [Abstract]
Customer obligations for returns and allowances		$ 38,460

Bank Financing (Details Narrati

Bank Financing (Details Narrative) - USD ($)	Aug. 01, 2017	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Line of Credit Facility [Line Items]
Revolving line of credit			$ 3,465,332		$ 3,465,332
Line of credit facility, LIBOR Rate plus rate			2.75%		2.75%
Incurred interest expense			$ 114,370	$ 89,512	$ 188,413	$ 143,138
Unused facility fee			$ 5,481	8,027	$ 19,559	23,291
First priority security ownership interest percentage			100.00%		100.00%
Line of credit facility, collateral amount			$ 815,000		$ 815,000
Amortization expense			$ (3,333)	(18,519)	(28,272)	(55,558)
Proceeds from lines of credit					$ 3,465,332	2,274,291
Term Note [Member]
Line of Credit Facility [Line Items]
Line of credit facility, interest rate during period					1.75%
Line of credit facility, LIBOR Rate plus rate			3.75%		3.75%
Incurred interest expense			$ 9,560	0	$ 17,170	0
Line of credit facility, periodic payment	$ 125,000
Outstanding balance			750,000		750,000		$ 0
Subordinated Debt [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum amount outstanding during period					$ 1,000,000
Line of credit facility, interest rate during period					6.00%
Incurred interest expense			12,269	$ 0	$ 26,228	$ 0
Line of credit facility, collateral amount			$ 815,000		815,000
Line of credit facility, periodic payment					$ 123,000
Maximum [Member]
Line of Credit Facility [Line Items]
First priority lien percentage			65.00%		65.00%
Prior 30 Days [Member] | Subordinated Debt [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum amount outstanding during period					$ 1,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt instrument, term					3 years
Line of credit facility, expiration date					Jul. 15, 2020
Line of credit facility, description					Usage under the Revolving Credit Facility shall not exceed the sum of the following (the “Borrowing Base”): 1. Up to 85% of the company’s eligible domestic and Canadian accounts receivable and up to 90% of eligible foreign credit insured accounts 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 2. Up to the lesser of (a) 60% of the cost of eligible inventory or (b) 85% of net orderly liquidation value percentage of eligible inventory (annual inventory appraisals required); minus 3. Applicable reserves including a dilution reserve equal to 100% of the Company’s advertising and return accrual reserves. Dilution reserve not to exceed availability generated from eligible accounts receivable.
Line of credit facility sub limits description					The Revolving Credit Facility includes the following sub-limits: 1. Letters of Credit to be issued limited to $3,000,000. 2. Inventory availability limited to $5,000,000. 3. $500,000 eligible in-transit inventory sublimit within the $5,000,000 total inventory. 4. 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, 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 $300,000 per year.
Line of credit facility, interest rate during period					0.75%
Line of credit facility default rate					2.00%
Line of credit facility, unused capacity, commitment fee percentage					0.375%
Line of credit facility, collateral fee					$ 40,000
Revolving Credit Facility [Member] | Term Note [Member]
Line of Credit Facility [Line Items]
Debt instrument, term		2 years
Proceeds from lines of credit		$ 1,000,000			1,000,000
Repayments of lines of credit		$ 1,924,000
Revolving Credit Facility [Member] | Peak Selling Season Between August 1 And December 31 [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum amount outstanding during period					15,000,000
Revolving line of credit			$ 5,000,000		5,000,000
Revolving Credit Facility [Member] | Peak Selling Season Between January 1 And July 31 [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum amount outstanding during period					7,500,000
Toys R Us bankruptcy's [Member] | Subordinated Debt [Member]
Line of Credit Facility [Line Items]
Line of credit facility, periodic payment					$ 123,000

Commitments and Contingencies35

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 177,000	$ 159,000	$ 500,000	$ 480,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 592,410
2,019	631,131
2,020	459,580
2,021	113,368
2022 and beyond	267,779
Total	$ 2,064,268

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Option Activity (Details)	9 Months Ended
	Dec. 31, 2017$ / sharesshares
Equity [Abstract]
Number of Options, beginning balance | shares	1,970,000
Number of Options Granted | shares	480,000
Number of Options Exercised | shares
Number of Options Forfeited | shares
Number of Options, ending balance | shares	2,450,000
Number of Options Exercisable | shares	1,970,000
Weighted Average Exercise Price, beginning balance | $ / shares	$ .19
Weighted Average Exercise Price Granted | $ / shares	0.49
Weighted Average Exercise Price Exercised | $ / shares
Weighted Average Exercise Price Forfeited | $ / shares
Weighted Average Exercise Price, ending balance | $ / shares	.23
Weighted Average Exercise Price, Options Exercisable | $ / shares	$ 0.17

Stock Options - Schedule of Emp

Stock Options - Schedule of Employee Stock Options Outstanding (Details) - $ / shares	9 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Stock Options Number Outstanding	2,450,000	1,970,000
Stock Option Outstanding Number Exercisable	1,970,000
Exercise Price Range One [Member]
Stock Options Outstanding Exercise Price, Lower Range Limit	$ 0.03
Stock Options Outstanding Exercise Price, Upper Range Limit	$ 0.33
Stock Options Number Outstanding	1,850,000
Stock Option Outstanding Weighted Average Remaining Contractual Life	4 years 9 months 18 days
Stock Option Outstanding Weighted Average Exercise Price	$ .15
Stock Option Outstanding Number Exercisable	1,850,000
Stock Option Outstanding Weighted Average Exercise Price	$ 0.15
Exercise Price Range Two [Member]
Stock Options Outstanding Exercise Price, Lower Range Limit	0.45
Stock Options Outstanding Exercise Price, Upper Range Limit	$ 0.93
Stock Options Number Outstanding	600,000
Stock Option Outstanding Weighted Average Remaining Contractual Life	5 years 7 months 6 days
Stock Option Outstanding Weighted Average Exercise Price	$ 0.48
Stock Option Outstanding Number Exercisable	120,000
Stock Option Outstanding Weighted Average Exercise Price	$ .45

Geographical Information - Sche

Geographical Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net Sales	$ 21,461,835	$ 16,319,804	$ 58,203,731	$ 49,308,247
North America [Member]
Segment Reporting Information [Line Items]
Net Sales	20,534,288	16,197,334	54,163,819	46,675,579
Europe [Member]
Segment Reporting Information [Line Items]
Net Sales	927,547	122,470	3,943,299	2,612,097
South Africa [Member]
Segment Reporting Information [Line Items]
Net Sales			$ 96,613	$ 20,571

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Related Party Transaction [Line Items]
Due from related parties, current		$ 1,213,000		$ 1,213,000		$ 0
Due to other related parties		286,000		286,000		$ 0
Proceeds from line of credit				3,465,332	$ 2,274,291
Incurred interest expense		114,370	$ 89,512	188,413	143,138
Sales revenue		21,461,835	16,319,804	58,203,731	49,308,247
Term Note [Member]
Related Party Transaction [Line Items]
Incurred interest expense		9,560	0	17,170	0
Subordinated Debt [Member]
Related Party Transaction [Line Items]
Incurred interest expense		12,269	0	26,228	0
Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Debt periodic payment				123,000
Revolving Credit Facility [Member] | Term Note [Member]
Related Party Transaction [Line Items]
Proceeds from line of credit	$ 1,000,000			1,000,000
Repayment of debt				924,000
Debt periodic payment				$ 123,000
Debt instrument due date				Jul. 15, 2020
Starlight Marketing Development, Ltd [Member]
Related Party Transaction [Line Items]
Due to related parties		$ 1,924,000		$ 1,924,000
Interest rate		6.00%		6.00%
Notes payable, related parties, current		$ 570,000		$ 570,000
Long term debt		245,000		245,000
Winglight Pacific Ltd [Member]
Related Party Transaction [Line Items]
Revenue from related parties		$ 0	$ 236,000	$ 1,462,000	$ 1,430,000
Related party gross margin percentage		0.00%	20.10%	21.80%	21.40%
Sales revenue		$ 210,000	$ 55,000	$ 533,000	$ 373,000
Starlight R&D, Ltd [Member]
Related Party Transaction [Line Items]
Related party purchases of services from related party transaction		117,000	7,000	117,000	30,000
Starlight Electronics Co Ltd [Member]
Related Party Transaction [Line Items]
Related party purchases of services from related party transaction		131,000	0	270,000	998,000
Starlight Consumer Electronics USA, Inc [Member]
Related Party Transaction [Line Items]
Related party purchases of services from related party transaction		0	38,000	79,000	136,000
Merrygain Holding Co Ltd [Member]
Related Party Transaction [Line Items]
Related party purchases of services from related party transaction		39,000	39,000	115,000	115,000
China Sinostar Group Co. Ltd [Member]
Related Party Transaction [Line Items]
Proceeds from fees received		$ 0	$ 12,000	$ 18,000	$ 53,000

Warranty Provisions (Details Na

Warranty Provisions (Details Narrative)	9 Months Ended
	Dec. 31, 2017
Product Warranties Disclosures [Abstract]
Standard product warranty description	Customers are either allowed to return defective goods within a specified period after shipment (between 6 and 9 months) or granted a “defective allowance” consisting of a fixed percentage (between 1% and 5%) off the invoice price in lieu of returning defective products.

Warranty Provisions - Schedule

Warranty Provisions - Schedule of Product Warranty Liability (Details) - USD ($)	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Product Warranties Disclosures [Abstract]
Estimated warranty provision at beginning of period	$ 223,700	$ 292,500
Costs accrued for future estimated returns	1,745,463	1,263,733
Returns received	(599,463)	(480,306)
Estimated warranty provision at beginning of period	$ 1,369,700	$ 1,075,927

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	Aug. 01, 2017	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Shares issued to board of directors	22,725
Shares issued price per share	$ 0.55
Share based compensation			$ 163,581	$ 54,698
Board of Directors [Member]
Share based compensation		$ 0	$ 13,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Defined contribution plan, administrative expenses	$ 15,000	$ 12,000	$ 39,000	$ 34,000

Concentration of Sales Risk (De

Concentration of Sales Risk (Details Narrative)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Sales Revenue [Member] | Top Five Customers [Member]
Concentration risk, percentage	80.00%	92.00%	74.00%	84.00%
Accounts Receivable [Member] | Toys R Us [Member]
Concentration risk, percentage	17.00%	20.00%	17.00%	21.00%