Algorhythm (RIME) 10-Q 14 Feb 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2019	Feb. 14, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	SINGING MACHINE CO INC
Entity Central Index Key	0000923601
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,557,643
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Mar. 31, 2019
Current Assets
Cash	$ 518,608	$ 211,408
Accounts receivable, net of allowances of $184,120 and $51,096, respectively	7,761,832	1,769,404
Due from PNC Bank	2,447,868	2,236,779
Insurance claim receivable	1,286,158
Inventories, net	8,102,914	6,024,311
Prepaid expenses and other current assets	139,680	274,278
Deferred financing costs	6,667	13,333
Total Current Assets	21,447,885	10,818,454
Property and equipment, net	844,246	522,910
Deferred financing costs, net of current portion		3,333
Deferred tax assets	1,052,999	758,366
Operating Leases - right of use assets	710,961
Other non-current assets	23,059	90,082
Total Assets	24,079,150	12,193,145
Current Liabilities
Accounts payable	6,584,894	842,708
Accrued expenses	2,605,128	950,773
Current portion of bank term note payable		125,000
Refunds due to customers	510,833	31,075
Reserve for sales returns	4,546,317	896,154
Current portion of finance leases	14,816	14,414
Current portion of installment notes	49,016
Current portion of operating lease liabilities	445,322
Current portion of subordinated related party debt - Starlight Marketing Development, Ltd.	802,659	815,367
Total Current Liabilities	15,958,657	3,675,491
Finance leases, net of current portion	6,340	17,499
Installment notes, net of current portion	227,520
Operating lease liabilities, net of current portion	349,880
Total Liabilities	16,542,397	3,692,990
Commitments and Contingencies
Shareholders' Equity
Common stock, Class B, $0.01 par value; 100,000,000 shares authorized; 38,557,643 and 38,464,753 shares issued and outstanding, respectively	385,577	384,647
Additional paid-in capital	19,724,040	19,687,264
Subscriptions receivable		(2,200)
Accumulated deficit	(12,572,864)	(11,569,556)
Total Shareholders' Equity	7,536,753	8,500,155
Total Liabilities and Shareholders' Equity	24,079,150	12,193,145
Cosmo Communications Canada, Inc [Member]
Current Assets
Accounts receivable related party	38,962
Winglight Pacific Ltd [Member]
Current Assets
Accounts receivable related party	1,145,196	288,941
Starlight Consumer Electronics Co.Ltd. [Member]
Current Liabilities
Due to related party	14,400
Starlight Electronics Co., Ltd [Member]
Current Liabilities
Due to related party	281,700
Starlight R&D, Ltd. [Member]
Current Liabilities
Due to related party	$ 103,572

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2019	Mar. 31, 2019
Allowance for doubtful accounts receivable, net	$ 184,120	$ 51,096
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	38,557,643	38,464,753
Common stock, shares outstanding	38,557,643	38,464,753

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net Sales	$ 15,519,516	$ 19,452,450	$ 40,410,398	$ 45,593,906
Cost of Goods Sold	11,486,520	13,826,176	29,747,376	34,369,467
Gross Profit	4,032,996	5,626,274	10,663,022	11,224,439
Operating Expenses
Selling expenses	3,402,717	2,236,777	6,550,139	4,698,141
General and administrative expenses	1,442,192	1,524,810	5,048,517	4,185,579
Depreciation	77,161	64,357	196,210	200,138
Total Operating Expenses	4,922,070	3,825,944	11,794,866	9,083,858
(Loss) Income from Operations	(889,074)	1,800,330	(1,131,844)	2,140,581
Other Expenses
Interest expense	(105,583)	(139,729)	(156,097)	(235,290)
Finance costs	(3,334)	(3,333)	(10,000)	(10,000)
Total Other Expenses	(108,917)	(143,062)	(166,097)	(245,290)
(Loss) Income Before Income Tax Benefit (Provision)	(997,991)	1,657,268	(1,297,941)	1,895,291
Income Tax Benefit (Provision)	240,042	(367,255)	294,633	(422,000)
Net (Loss) Income	$ (757,949)	$ 1,290,013	$ (1,003,308)	$ 1,473,291
Net (Loss) Income per Common Share
Basic	$ (0.02)	$ 0.03	$ (0.03)	$ 0.04
Diluted	$ (0.02)	$ 0.03	$ (0.03)	$ 0.04
Weighted Average Common and Common Equivalent Shares:
Basic	38,557,643	38,384,753	38,524,698	38,315,395
Diluted	38,557,643	39,459,369	38,524,698	39,397,875

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net (loss) income	$ (1,003,308)	$ 1,473,291
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation	196,210	200,138
Amortization of deferred financing costs	10,000	10,000
Change in inventory reserve	150,000	(56,780)
Change in allowance for bad debts	133,024	162,198
Stock based compensation	27,506	42,879
Change in net deferred tax assets	(294,633)	422,001
Changes in operating assets and liabilities:
Accounts receivable	(6,125,452)	(9,697,203)
Due from PNC Bank	(211,089)	6,212
Accounts receivable - related parties	(895,217)	(515,580)
Insurance receivable	(1,286,158)
Inventories	(2,228,603)	2,475,145
Prepaid expenses and other current assets	134,598	25,587
Other non-current assets	67,023	(516)
Accounts payable	5,742,186	1,744,862
Accrued expenses	1,780,393	1,036,699
Due to related parties	399,672	293,717
Refunds due to customers	479,758	(445,484)
Reserve for sales returns	3,650,163	1,324,486
Operating lease liabilities, net of operating leases - right of use assets	(41,797)
Net cash provided by (used in) operating activities	684,275	(1,498,348)
Cash flows from investing activities
Purchase of property and equipment	(517,546)	(288,740)
Net cash used in investing activities	(517,546)	(288,740)
Cash flows from financing activities
Net proceeds from revolving line of credit		2,931,118
Proceeds from installment notes	283,840
Payments on installment notes	(7,304)
Proceeds from subscription receivable	2,200
Proceeds from exercise of stock options	10,200	6,400
Payment of bank term note	(125,000)	(375,000)
Payment on subordinated debt - related party	(12,708)
Payments on finance leases	(10,757)	(8,093)
Net cash provided by financing activities	140,471	2,554,425
Net change in cash	307,200	767,337
Cash at beginning of period	211,408	813,908
Cash at end of period	518,608	1,581,245
Supplemental disclosures of cash flow information:
Cash paid for interest	167,954	215,501
Equipment purchased under capital lease		43,527
Operating leases - right of use assets initial adoption	1,108,330
Operating lease liabilities - initial adoption	$ 1,234,368

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid in Capital [Member]	Subscriptions Receivable [Member]	Accumulated Deficit [Member]	Total
Balance at Mar. 31, 2018		$ 382,820	$ 19,624,063		$ (12,201,103)	$ 7,805,780
Balance, shares at Mar. 31, 2018		38,282,028
Net Income loss					1,473,291	1,473,291
Employee compensation-stock option			30,379			30,379
Exercise of stock options		$ 800	5,600			6,400
Exercise of stock options, shares		80,000
Director fees		$ 227	12,273			12,500
Director fees, shares		22,725
Balance at Dec. 31, 2018		$ 383,847	19,672,315		(10,727,812)	9,328,350
Balance, shares at Dec. 31, 2018		38,384,753
Balance at Sep. 30, 2018		$ 383,847	19,662,766		(12,017,825)	8,028,788
Balance, shares at Sep. 30, 2018		38,384,753
Net Income loss					1,290,013	1,290,013
Employee compensation-stock option			9,549			9,549
Balance at Dec. 31, 2018		$ 383,847	19,672,315		(10,727,812)	9,328,350
Balance, shares at Dec. 31, 2018		38,384,753
Balance at Mar. 31, 2019		$ 384,648	19,687,263	(2,200)	(11,569,556)	8,500,155
Balance, shares at Mar. 31, 2019		38,464,753
Net Income loss					(1,003,308)	(1,003,308)
Employee compensation-stock option			15,006			15,006
Exercise of stock options		$ 600	9,600			10,200
Exercise of stock options, shares		60,000
Collection of subscription receivable				2,200		2,200
Issuance of common stock - directors		$ 329	12,171			12,500
Issuance of common stock - directors, shares		32,890
Balance at Dec. 31, 2019		$ 385,577	19,724,040		(12,572,864)	7,536,753
Balance, shares at Dec. 31, 2019		38,557,643
Balance at Sep. 30, 2019		$ 38,557,643	19,719,038		(11,814,915)	8,289,700
Balance, shares at Sep. 30, 2019		385,577
Net Income loss					(757,949)	(757,949)
Employee compensation-stock option			5,002			5,002
Balance at Dec. 31, 2019		$ 385,577	$ 19,724,040		$ (12,572,864)	$ 7,536,753
Balance, shares at Dec. 31, 2019		38,557,643

Basis of Presentation

Basis of Presentation	9 Months Ended
	Dec. 31, 2019
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.

Liquidity

Liquidity	9 Months Ended
	Dec. 31, 2019
Liquidity
Liquidity	NOTE 2 – LIQUIDITY In August 2019, we received notification from a major customer that several containers of goods from multiple vessels purchased direct import by the customer had arrived severely water damaged. Upon inspection of the damaged goods by insurance surveyors it was their opinion that the source of the damage was due to moisture in the pallets provided by the factory which caused significant condensation and consequently water damage to the merchandise. Actual damage to the goods occurred while the goods were in transit. We have filed insurance claims on our cargo insurance policy which does provide for recovery of the sales value plus additional expenses associated with the damaged goods. For the three months ended December 31, 2019, the customer charged us back a total of approximately $48,000 for damaged goods consisting of sales value of approximately $46,000 which was recorded as a reduction in net sales and approximately $2,000 in survey fees which were expensed as a component of general and administrative expenses on the accompanying condensed consolidated statements of operations. For the nine months ended December 31, 2019, the customer charged us back a total of approximately $1,691,000 for damaged goods consisting of sales value of approximately $1,580,000 which was recorded as a reduction in net sales, approximately $109,000 in freight charges which were expensed as a component of sales and marketing expenses and approximately $2,000 in survey fees which were expensed as a component of general and administrative expenses on the accompanying condensed consolidated statements of operations. For the three and nine months ended December 31, 2019 we have incurred additional related expenses of approximately $127,000 and $346,000, respectively that were included as a component of general and administrative expenses on the accompanying condensed consolidated statements of operations. We continue to gather the relevant information required to complete the insurance claims, however due to the significant extent of the damage more time will be required by the underwriter to determine the final claim settlement. As such, we have recorded a refund due to the customer of approximately $510,000 which reflects approximately $1,691,000 of chargebacks by the customer less approximately $1,181,000 the customer has deducted on payment remittances to the Company as of December 31, 2019. We recognized an insurance claim receivable of approximately $1,286,000 (the approximate cost of the damaged goods returned that will be destroyed) on the accompanying condensed consolidated balance sheet at December 31, 2019. The timing of the collection of this insurance claim receivable remains uncertain at this time. As of December 31, 2019 the Company was in default on the Revolving Credit Facility due to non-compliance with the fixed charge coverage ratio in part due to the loss of margin and expenses associated with the damaged goods discussed above as well as a loss from operations. In November 2019, the Company entered into a Forbearance Agreement with PNC Bank, National Association (“PNC”) whereby PNC “forbears” taking action it would be entitled to under a default through March 31, 2020 at which time we would renegotiate renewal of the Revolving Credit Facility or obtain alternative financing. ● PNC implemented a $1,000,000 loan availability block. ● PNC required an EBITDA hurdle greater than or equal to $400,000 for the third quarter ending December 31, 2019 and requires EBITDA of $0 for the six months ending March 31, 2020 and $(83,000) for the twelve months ending March 31, 2020. ● PNC implemented loan pricing increase of .5% until March 31, 2020 which will continue until the Company achieves compliance with the original fixed charge coverage ratio test of 1.1:1. As of December 31, 2019 the Company did not meet the required EBITDA hurdle of greater than or equal to $400,000 for the third quarter ended December 31, 2019 and is unlikely to meet the remaining hurdles of the Forbearance Agreement for the fiscal year ending March 31, 2020. As of December 31, 2019 the Revolving Credit Facility has no outstanding balance and there have been no further actions by PNC to exercise any of their options afforded to them as per the terms of the Revolving Credit Facility. For the nine months ended December 31, 2019, the Company incurred a net loss of approximately $1,003,000 compared to net income of approximately $1,473,000 for the nine months ended December 31, 2018. The Company expects cash flows from operations as well as other financing resources to be adequate to satisfy working capital requirements for at least the next twelve months from the date the accompanying condensed consolidated financial statements are issued. The Company plans to supplement cash flows from operations from several activities and resources including the following: ● Reduce operating expenses. ● Continue to negotiate renewal of the existing Revolving Credit Facility with PNC Bank prior to its expiration on July 15, 2020. ● Continuing discussions for alternative financing arrangements with several financial institutions. ● Utilize “dynamic discount” programs offered by several of the Company’s major customers which allow for accelerated payment of invoices in exchange for an early pay discount. There can be no assurances that any of the above actions can be accomplished or that financing will be available on acceptable terms. If the Company is unable to obtain financing or continues to experience sustained losses from operations this would have a material adverse effect on its ability to meet its financial obligations when due.

Summary of Accounting Policies

Summary of Accounting Policies	9 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Accounting Policies	NOTE 3 - SUMMARY OF 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, 2019 and 2018 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 Securities and Exchange Commission. 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, 2019 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, 2019. 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 100% 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. 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 are recorded in the condensed consolidated statement of operations and translations are recorded in a separate component of shareholders’ equity. Any such amounts 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, 2019 and March 31, 2019 are approximately $426,000 and $211,000, 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 net realizable value, as determined using the first in, first out method. Inventories also include an estimate for the net realizable value of expected future inventory returns due to warranty and allowance programs. As of December 31, 2019 and March 31, 2019 the estimated amounts for these future inventory returns were approximately $2,444,000 and $599,000, respectively. The Company 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, 2019 and March 31, 2019 the Company had inventory reserves of approximately $404,000 and $254,000 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, refunds due to customers 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 subordinated debt to Starlight Marketing Development, Ltd. (related party) and finance leases approximate fair value due to the relatively short period to maturity and related interest accrued at a rate similar to market rates. The carrying amount 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 AND RESERVE FOR SALES RETURNS The Company recognizes revenue in accordance with FASB ASC 606, “Revenue from Contracts with Customers”. The Company’s contracts with customers consist of one performance obligation (the sale of the Company’s products). Revenue is recognized when the goods are delivered and control of the goods sold is transferred to the customer. The Company’s contracts have no financing elements, payment terms are less than 120 days and have no further contract asset or liability obligations once control of goods is transferred to the customer. Revenue is recorded in the amount of consideration the Company expects to receive for the sale of these goods. Costs incurred in fulfilling contracts with customers include administrative costs associated with the procurement of goods are included in general and administrative expenses, in-bound freight costs are included in the cost of goods sold and accrued sales representative commissions are included in selling expenses in the accompanying condensed consolidated statements of operations. The Company disaggregates revenues by product line and major geographic region as most of its revenue is generated by the sales of karaoke hardware and the Company has no other material business segments (See NOTE 10). The Company generally does not allow products to be returned other than return allowance programs for goods returned to the customer for various reasons and accordingly records a sales return reserve based on historic return amounts, events as identified and management estimates. The Company’s reserve for sales returns were approximately $4,546,000 and $896,000 as of December 31, 2019 and March 31, 2019, respectively. Revenue is derived from four different major product lines. Disaggregated revenue from these product lines for the three and nine months ended December 31, 2019 and 2018 consisted of the following: Revenue by Product Line Three Months Ended Nine Months Ended Product Line 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Classic Karaoke Machines $ 10,336,078 $ 10,740,373 $ 29,067,908 $ 28,014,115 Download Karaoke Machines 3,636,057 7,343,426 5,534,065 12,750,096 SMC Kids Toys 339,577 334,150 967,939 2,036,623 Music and Accessories 1,207,804 1,034,501 4,840,486 2,793,072 Total Net Sales $ 15,519,516 $ 19,452,450 $ 40,410,398 $ 45,593,906 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 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 December 31, 2019 and 2018 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, 2019 and 2018, the stock option expense was approximately $5,000 and $10,000, respectively. For the nine months ended December 31, 2019 and 2018, the stock option expense was $15,000 and $30,000, 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 indicate 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 1% to 13% 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, which is included as a component of selling expenses on the accompanying condensed consolidated statements of operations, for the three months ended December 31, 2019 and 2018 was approximately $2,040,000 and $1,328,000, respectively. Advertising expense for the nine months ended December 31, 2019 and 2018 was approximately $3,820,000 and $2,877,000, respectively. As of December 31, 2019 and March 31, 2019 there was an accrual for cooperative advertising allowances of $1,689,000 and $185,000, 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 general and administrative expenses in the condensed consolidated statements of operations. For the three months ended December 31, 2019 and 2018, these amounts totaled approximately $13,000 and $27,000, respectively. For the nine months ended December 31, 2019 and 2018, these amounts totaled approximately $36,000 and $64,000 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. For the nine months ended December 31, 2019 and 2018 we estimated our effective tax rate to be approximately 22%. As of December 31, 2019 and March 31, 2019, the Company had gross deferred tax assets of approximately $1,053,000 and $758,000, respectively. The Company recorded an income tax benefit of approximately $240,000 and an income tax provision of approximately $367,000 for the three months ended December 31, 2019 and 2018, respectively. The Company recorded an income tax benefit of approximately $295,000 and an income tax provision of $422,000 for the nine months ended December 31, 2019 and 2018, 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, 2019, 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. COMPUTATION OF EARNINGS (LOSS) 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. As of December 31, 2019 and 2018 total potential dilutive shares from common stock options amounted to approximately 2,250,000 and 2,350,000 shares, respectively. These shares were not included in the computation of diluted earnings per share for the three and nine months ended December 31, 2019 because their effect was anti-dilutive. These shares were included in the computation of diluted earnings per share for the three and nine months ended December 31, 2018. ADOPTION OF NEW ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Topic 842, as amended, “Leases”. The ASU requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than twelve months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. On April 1, 2019, the Company adopted the new lease standard using the optional transition method under which comparative financial information will not be restated and continue to apply the provisions of the previous lease standard in its disclosures for the comparative periods. (See Note 7– LEASES). The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date. The liability is equal to the present value of the remaining minimum lease payments. The asset is based on the liability, subject to certain adjustments. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard) while finance leases result in a front-loaded expense pattern (similar to capital leases under the prior accounting standard). As the interest rate implicit in the Company’s operating leases is not readily determinable, the Company utilizes its incremental borrowing rate to discount the lease payments. The Company utilizes the implicit rate for its finance leases. RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740). In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses” (Topic 326)

Inventories, Net

Inventories, Net	9 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventories, Net	NOTE 4 - INVENTORIES, NET Inventories are comprised of the following components: December 31, 2019 March 31, 2019 Finished Goods $ 6,062,661 $ 5,679,245 Estimated Amount of Future Returns 2,444,253 599,066 Subtotal 8,506,914 6,278,311 Less:Inventory Reserve 404,000 254,000 Inventories, net $ 8,102,914 $ 6,024,311

Property and Equipment

Property and Equipment	9 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 5 – PROPERTY AND EQUIPMENT A summary of property and equipment is as follows: USEFUL December 31, March 31, LIFE 2019 2019 Computer and office equipment 5 years $ 444,935 $ 140,575 Furniture and fixtures 7 years 98,410 98,410 Warehouse equipment 7 years 195,401 209,419 Molds and tooling 3-5 years 1,680,022 1,466,837 2,418,768 1,915,241 Less: Accumulated depreciation 1,574,522 1,392,331 $ 844,246 $ 522,910 Depreciation expense for the three months ended December 31, 2019 and 2018 was approximately $77,000 and $64,000, respectively. Depreciation expense for the nine months ended December 31, 2019 and 2018 was approximately $196,000 and $200,000, respectively.

Bank Financing

Bank Financing	9 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Bank Financing	NOTE 6 – BANK FINANCING Revolving Credit Facility On June 22, 2017, the Company renewed the existing revolving credit facility (the “Revolving Credit Facility”) with 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, 2019 and March 31, 2019, the outstanding balance was approximately $0 and $0, respectively, on the Revolving Credit Facility. As of December 31, 2019, there was approximately $15,000,000 available to borrow on the Revolving Credit Facility, assuming compliance with the limits and covenants as discussed below. 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 $375,000 per year. As of December 31, 2019 the Company remained in default on the Revolving Credit Facility due to non-compliance with the fixed charge coverage ratio in part due to the loss of margin and related expenses associated with the damaged goods received by one major customer in August, 2019. In November 2019, the Company entered into a Forbearance Agreement with PNC whereby PNC “forbears” taking action it would be entitled to under a default through March 31, 2020 and would continue forbearance actions provided the Company continued to meet compliance with certain conditions (See Note 2 – LIQUIDITY). As of December 31, 2019 the Company did not meet the required conditions of the Forbearance Agreement and is unlikely to meet the remaining hurdles of the Forbearance Agreement for the fiscal year ending March 31, 2020. As of December 31, 2019 the Revolving Credit Facility has no outstanding balance and there have been no further actions by PNC to exercise any of their options afforded to them as per the terms of the Revolving Credit Facility. Prior the Forbearance Agreement interest on the Revolving Line of Credit was 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. Upon execution of the Forbearance Agreement there was a pricing rate increase of .5% on the .75% per annum rate and the PNC LIBOR Rate plus 2.75% (See Note 2 – LIQUIDITY). 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, 2019 and 2018 the Company incurred interest expense of approximately $86,000 and $100,000, respectively, on amounts borrowed against the Revolving Credit Facility. During the nine months ended December 31, 2019 and 2018, the Company incurred interest expense of approximately $119,000 and $155,000, respectively on amounts borrowed against the Revolving Credit Facility. During the three months ended December 31, 2019 and 2018, the Company incurred an unused facility fee of approximately $10,000 and $8,000, respectively on the unused portion of the Revolving Credit Facility. During the nine months ended December 31, 2019 and 2018, the Company incurred an unused facility fee of approximately $30,000 and $23,000, 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’ foreign 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 $803,000. 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, 2019 and 2018, the Company incurred amortization expense of approximately $3,000 associated with the amortization of deferred financing costs from the original Revolving Credit Facility. During the nine months ended December 31, 2019 and 2018 the Company incurred amortization expense of approximately $10,000 associated with the amortization of deferred financing costs from the original Revolving Credit Facility. Subordinated Related Party Debt The subordination agreement was 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 and ending on the debt maturity date of June 30, 2019. There are no provisions to continue accruing interest on the outstanding principal amount due as of June 30, 2019. 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, including payments after the scheduled maturity date, 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. Quarterly installment payments of $123,000 due on the last day of each fiscal quarter have not been made since September 2017 due to the Company not meeting these requirements; a payment of $123,000 which includes principal and interest, was not made during the three months ended December 31, 2019. A payment of $25,000 was made in August 2019 with approximately $12,500 paying down the principal and approximately $12,500 paying interest due. During the three months ended December 31, 2019 and 2018, the Company incurred interest expense of approximately $0 and $7,000 respectively on the related party subordinated debt. During the nine months ended December 31, 2019 and 2018, the Company incurred interest expense of approximately $0 and $20,000, respectively on the related party subordinated debt. As of December 31, 2019 and March 31, 2019, the remaining amount due on the subordinated related party debt was approximately $803,000 and $815,000, respectively. Bank Term Note The Company repaid the final $125,000 installment of a term loan with PNC which originated in fiscal year 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7 - COMMITMENTS AND CONTINGENCIES LEASES Operating Leases We have operating lease agreements for offices and a warehouse facility in Florida, California and Hong Kong expiring in various years through 2024. We entered into an operating lease agreement, effective October 1, 2017, for the corporate headquarters located in Fort Lauderdale, Florida where we lease approximately 6,500 square feet of office space. The lease expires on March 31, 2024. The base rent payment is approximately $8,800 per month, subject to annual adjustments. We entered into an operating lease agreement, effective June 1, 2013, for 86,000 square feet of warehouse space in Ontario, California for our logistics operations. The lease expires on August 31, 2020 (original lease term of 87 months). The base rent payment is approximately $43,700 per month for the remaining term of the lease. The lease provides for a renewal option to extend the lease term for 5 years at the fair market value at the time of renewal. We entered into an operating lease agreement, effective May 1, 2018, for 424 square feet of office space in Macau, Hong Kong. The rent is fixed at approximately $1,600 per month for the duration of the lease which expires on April 30, 2021. The lease provides for a renewal option to extend the lease. Lease expense for our operating leases is recognized on a straight-line basis over the lease terms. Finance Leases On May 25, 2018 and June 4, 2018, we entered into two long-term capital leasing arrangements with Wells Fargo Equipment Finance (“Wells Fargo”) to finance the leasing of two used forklift vehicles in the amount of approximately $44,000. The leases require monthly payments in the amount of $1,279 per month over a total lease term of 36 months which commenced on June 1, 2018. The agreement has an effective interest rate of 4.5% and the Company has the option to purchase the equipment at the end of the lease term for one dollar. Supplemental balance sheet information related to leases as of December 31, 2019 is as follows: Assets: Operating lease - right-of-use assets $ 710,961 Finance leases as a component of property and equipment, net of accumulated depreciation of $10,363 33,163 Liabilities Current Current portion of operating leases $ 445,322 Current portion of finance leases 14,816 Noncurrent Operating lease liabilities, net of current portion $ 349,880 Finance leases, net of current portion 6,340 Supplemental statement of operations information related to leases for the three and nine months ended December 31, 2019 is as follows: Three Months Ended Nine Months December 31 2019 December 31 2019 Operating lease expense as a component of general and administrative expenses $ 148,725 $ 446,173 Finance lease cost Depreciation of leased assets as a component of depreciation $ 1,554 $ 4,664 Interest on lease liabilities as a component of interest expense $ 217 $ 750 Supplemental cash flow information related to leases for the nine months ended December 31, 2019 is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow paid for operating leases $ 487,971 Financing cash flow paid for finance leases $ 10,757 Lease term and Discount Rate Weighted average remaining lease term (months) 32.6 Operating leases 17.0 Finance leases Weighted average discount rate Operating leases 6.25 % Finance leases 3.68 % Scheduled maturities of operating and finance lease liabilities outstanding as of December 31, 2019 are as follows: Year Operating Leases Finance Leases 2020, for the remaining 3 months $ 163,179 $ 3,837 2021 348,531 15,347 2022 115,812 2,558 2023 117,638 - 2024 121,167 - Total Minimum Future Payments 866,327 21,741 Less: Imputed Interest 71,125 585 Present Value of Lease Liabilities $ 795,202 $ 21,156 Installment Notes On June 18, 2019, the Company entered into a financing arrangement with Dimension Funding, LLC (“Dimension”) to finance a new Enterprise Resource Planning (“ERP”) System project over a term of 60 months at a cost of approximately $375,000. Dimension has a 100% security interest in the licensed software being financed. We estimate the system to be placed in service on April 1, 2020. Upon approval by Company management, Dimension released progress payments directly to the project consultants as specific project milestones were met. Total progress payments will be made to the vendor over a period of approximately nine months and the Company will be charged financing costs on the amounts preapproved for the project. Payments advanced by Dimension to the project consultant during the three months ended December 31, 2019 totaled approximately $108,000. Payments advanced by Dimension to the project consultant during the nine months ended December 31, 2019 totaled approximately $284,000. As of December 31, 2019 these advances were converted to installment notes which call for estimated monthly installment payments of approximately $5,785 (including principal and interest) over a 60 month period and bear interest of approximately 8.2%. As of December 31, 2019 the total principal amount outstanding on the installment notes was approximately $276,000 of which approximately $49,000 is classified as a current liability and approximately $227,000 is classified as a long-term liability on the accompanying condensed consolidated balance sheet. Total interest expense on the installment notes was approximately $3,000, and $10,000 for the three and nine months ended December 31, 2019. LEGAL MATTERS Management is not aware of any legal proceedings other than matters that arise in the ordinary course of business.

Stock Options

Stock Options	9 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock Options	NOTE 8 - STOCK OPTIONS During the nine months ended December 31, 2019 the Company issued 100,000 stock options at an exercise price of $.38 to directors as compensation for their service. The fair value of each 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. The following inputs were used to value each option grant: ● For nine months ended December 31, 2019: expected dividend yield of 0%, risk-free interest rate of 2.08%, volatility of 112.3% and an expected term of three years. A summary of stock option activity for the nine months ended December 31, 2019 is summarized below: December 31, 2019 Number of Options Weighted Average Exercise Stock Options: Balance at beginning of period 2,210,000 $ 0.25 Granted 100,000 $ 0.38 Exercised (60,000 ) $ 0.17 Balance at end of period 2,250,000 $ 0.26 Options exercisable at end of period 2,150,000 $ 0.25 The following table summarizes information about employee stock options outstanding at December 31, 2019: Range of Exercise Price Number Weighted Average Remaining Contractural Life Weighted Average Exercise Price Number Weighted Average Exercise Price $.03 - $.32 1,570,000 3.5 $ 0.16 1,570,000 $ 0.16 $.38 - $.55 680,000 8.1 $ 0.42 580,000 $ 0.50 * 2,250,000 2,150,000 * Total number of options outstanding as of December 31, 2019 includes 500,000 options issued to five current and two former directors as compensation and 1,150,000 options issue to key employees that were not issued from the Plan. As of December 31, 2019 there was unrecognized expense of approximately $5,000 remaining on options currently vesting over time with approximately three months remaining until these options are fully vested. The intrinsic value of vested options as of December 31, 2019 was approximately $134,000.

Common Stock Issuances

Common Stock Issuances	9 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Common Stock Issuances	NOTE 9 – COMMON STOCK ISSUANCES On June 12, 2019, the Company issued 32,890 shares of its common stock to its Board of Directors valued at $0.38 per share, pursuant to our annual director compensation plan for the fiscal year ending March 31, 2019. The Company recorded director compensation of $0 and $12,500 during the three and nine months ended December 31, 2019, respectively.

Geographical Information

Geographical Information	9 Months Ended
	Dec. 31, 2019
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, 2019 and 2018 were primarily made by the Macau Subsidiary in US dollars. 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, 2019 2018 2019 2018 North America $ 14,087,271 $ 18,627,982 $ 34,964,607 $ 41,704,128 Europe 1,396,148 679,499 4,935,548 3,657,429 Australia 36,097 100,768 510,243 179,923 Others - 44,201 - 52,426 $ 15,519,516 $ 19,452,450 $ 40,410,398 $ 45,593,906 The geographic area of sales was based on the location where the product is delivered.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 11 –RELATED PARTY TRANSACTIONS All transactions listed below are related to the Company as they are all with affiliates of our Chairman of the Board, Mr. Phillip Lau. DUE TO/FROM RELATED PARTIES On December 31, 2019 and March 31, 2019, in the aggregate the Company had approximately $1,184,000 and $289,000, respectively, due from related parties for goods and services sold to these companies. On December 31, 2019 and March 31, 2019, the Company had amounts due to related parties in the amounts of approximately $400,000 and $0 for facility fees, storage and administrative services provided to the Company by these related parties. Subordinated Related Party Debt In connection with the Revolving Credit Facility the Company was required to subordinate related party debt to Starlight Marketing Development, Ltd. (“subordinated debt”). The 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 and ending on the debt maturity date of June 30, 2019. There are no provisions to continue accruing interest on the outstanding amount due as of June 30, 2019. The remaining amount due on the subordinated debt of approximately $803,000 and $815,000 were classified as a current liability as of December 31, 2019 and March 31, 2019, respectively on the condensed consolidated balance sheets. Quarterly installment payments of $123,000 due on the last day of each fiscal quarter have not been made since September 2017; however a payment of $25,000 which includes principal and interest, was made during the nine months ended December 31, 2019. During the three months ended December 31, 2019 and 2018 the Company incurred interest expense of approximately $0 and $4,000 respectively on the related party subordinated debt. During the nine months ended December 31, 2019 and 2018 the Company incurred interest expense of approximately $0 and $20,000, respectively on the related party subordinated debt. TRADE During the three months ended December 31, 2019 and 2018 the Company sold approximately $0 and $33,000, 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, 2019 and 2018 was NA and 23.9%, 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 operations. During the three months ended December 31, 2019 and 2018 the Company sold approximately $45,000 and $16,000 respectively of product directly to Cosmo from its California warehouse facility. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of operations. During the nine months ended December 31, 2019 and 2018 the Company sold approximately $852,000 and $1,183,000, 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, 2019 and 2018 was 23.7% and 30.0%, respectively. The product was shipped to Cosmo. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of operations. During the nine months ended December 31, 2019 and 2018 the Company sold approximately $284,000 and $655,000, respectively of product directly to Cosmo from its California warehouse facility. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of operations. The Company incurred service expenses from Starlight Electronics Co, Ltd, (“SLE”) a related party. The services from SLE for the three months ended December 31, 2019 and 2018 were approximately $91,000, and $87,000 respectively. The services from SLE for the nine months ended December 31, 2019 and 2018 were approximately $282,000 and $268,000 respectively. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations.

Reserve for Sales Returns

Reserve for Sales Returns	9 Months Ended
	Dec. 31, 2019
Reserve For Sales Returns
Reserve for Sales Returns	NOTE 12 – RESERVE FOR SALES RETURNS A return program for defective goods is negotiated with each of our wholesale customers on a year-to-year basis. Customers are allowed to return defective goods within a specified period of time after shipment (between 6 and 9 months). The Company does make occasional exceptions to this return policy and accordingly records a sales return reserve based on historic return amounts, specific exceptions as identified and management estimates. The Company records a sales reserve for its return goods programs at the time of sale for estimated sales returns that may occur. The liability for defective goods is included in the reserve for sales returns on the condensed consolidated balance sheets. Changes in the Company’s reserve for sales returns are presented in the following table: December 31, 2019 December 31, 2018 Reserve for sales returns at beginning of the period $ 896,154 $ 726,000 Provision for estimated sales returns 6,757,115 3,235,305 Sales returns received (3,106,951 ) (1,910,819 ) Reserve for sales returns at end of the period $ 4,546,317 $ 2,050,486

Refunds Due to Customers

Refunds Due to Customers	9 Months Ended
	Dec. 31, 2019
Refunds Due To Customers
Refunds Due to Customers	NOTE 13 – REFUNDS DUE TO CUSTOMERS As of December 31, 2019 and March 31, 2019 the amount of refunds due to customers was approximately $510,000 and $31,000, respectively Refunds due to customers at December 31, 2019 are due to one major customer which reflects approximately $1,691,000 of chargebacks less approximately $1,181,000 that the customer has deducted on payment remittances to the Company as of December 31, 2019. (See Note 2 – LIQUIDITY).

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Dec. 31, 2019
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, 2019 and 2018 totaled approximately $15,000 and $18,000, respectively. The amounts charged to operations for contributions to this plan and administrative costs during the nine months ended December 31, 2019 and 2018 totaled approximately $47,000 and $51,000, 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.

Concentrations of Credit and Sa

Concentrations of Credit and Sales Risk	9 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Concentrations of Credit and Sales Risk	NOTE 15 - CONCENTRATIONS OF CREDIT AND SALES RISK The Company derives a majority of its revenues from retailers of products in the United States. The Company’s allowance for doubtful accounts is based upon management’s estimates and historical experience and reflects the fact that accounts receivable are concentrated with several large customers. At December 31, 2019, 74% of accounts receivable were due from five customers in North America that individually owed over 10% of total accounts receivable. At March 31, 2019, 62% of accounts receivable were due from three customers in North America that individually owed over 10% of total accounts receivable. 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. For the three months ended December 31, 2019, there were four customers who individually accounted for 10% or more of the Company’s net sales. Revenue derived from these customers as a percentage of net sales were 27%, 17%, 13%, and 12% respectively. For the three months ended December 31, 2018, there were five customers who individually accounted for 10% or more of the Company’s net sales. Revenue derived from these customers as a percentage of net sales were 34%, 17%, 16%, 13% and 13%, respectively. For the nine months ended December 31, 2019, there were three customers who individually accounted for 10% or more of the Company’s net sales. Revenue derived from these customers as a percentage of net sales were 39%, 13% and 10% respectively. For the nine months ended December 31, 2018, there were five customers who individually accounted for 10% or more of the Company’s net sales. Revenue derived from these customers as a percentage of net sales were 37%, 14%, 13%, 12% and 10%, respectively.

Summary of Accounting Policies

Summary of Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2019
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, 2019 and 2018 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 Securities and Exchange Commission. 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, 2019 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, 2019. 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 100% 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. 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 are recorded in the condensed consolidated statement of operations and translations are recorded in a separate component of shareholders’ equity. Any such amounts 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, 2019 and March 31, 2019 are approximately $426,000 and $211,000, 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 net realizable value, as determined using the first in, first out method. Inventories also include an estimate for the net realizable value of expected future inventory returns due to warranty and allowance programs. As of December 31, 2019 and March 31, 2019 the estimated amounts for these future inventory returns were approximately $2,444,000 and $599,000, respectively. The Company 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, 2019 and March 31, 2019 the Company had inventory reserves of approximately $404,000 and $254,000 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, refunds due to customers 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 subordinated debt to Starlight Marketing Development, Ltd. (related party) and finance leases approximate fair value due to the relatively short period to maturity and related interest accrued at a rate similar to market rates. The carrying amount 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 and Reserve for Sales Returns	REVENUE RECOGNITION AND RESERVE FOR SALES RETURNS The Company recognizes revenue in accordance with FASB ASC 606, “Revenue from Contracts with Customers”. The Company’s contracts with customers consist of one performance obligation (the sale of the Company’s products). Revenue is recognized when the goods are delivered and control of the goods sold is transferred to the customer. The Company’s contracts have no financing elements, payment terms are less than 120 days and have no further contract asset or liability obligations once control of goods is transferred to the customer. Revenue is recorded in the amount of consideration the Company expects to receive for the sale of these goods. Costs incurred in fulfilling contracts with customers include administrative costs associated with the procurement of goods are included in general and administrative expenses, in-bound freight costs are included in the cost of goods sold and accrued sales representative commissions are included in selling expenses in the accompanying condensed consolidated statements of operations. The Company disaggregates revenues by product line and major geographic region as most of its revenue is generated by the sales of karaoke hardware and the Company has no other material business segments (See NOTE 10). The Company generally does not allow products to be returned other than return allowance programs for goods returned to the customer for various reasons and accordingly records a sales return reserve based on historic return amounts, events as identified and management estimates. The Company’s reserve for sales returns were approximately $4,546,000 and $896,000 as of December 31, 2019 and March 31, 2019, respectively. Revenue is derived from four different major product lines. Disaggregated revenue from these product lines for the three and nine months ended December 31, 2019 and 2018 consisted of the following: Revenue by Product Line Three Months Ended Nine Months Ended Product Line 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Classic Karaoke Machines $ 10,336,078 $ 10,740,373 $ 29,067,908 $ 28,014,115 Download Karaoke Machines 3,636,057 7,343,426 5,534,065 12,750,096 SMC Kids Toys 339,577 334,150 967,939 2,036,623 Music and Accessories 1,207,804 1,034,501 4,840,486 2,793,072 Total Net Sales $ 15,519,516 $ 19,452,450 $ 40,410,398 $ 45,593,906
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 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 December 31, 2019 and 2018 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, 2019 and 2018, the stock option expense was approximately $5,000 and $10,000, respectively. For the nine months ended December 31, 2019 and 2018, the stock option expense was $15,000 and $30,000, 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 indicate 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 1% to 13% 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, which is included as a component of selling expenses on the accompanying condensed consolidated statements of operations, for the three months ended December 31, 2019 and 2018 was approximately $2,040,000 and $1,328,000, respectively. Advertising expense for the nine months ended December 31, 2019 and 2018 was approximately $3,820,000 and $2,877,000, respectively. As of December 31, 2019 and March 31, 2019 there was an accrual for cooperative advertising allowances of $1,689,000 and $185,000, 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 general and administrative expenses in the condensed consolidated statements of operations. For the three months ended December 31, 2019 and 2018, these amounts totaled approximately $13,000 and $27,000, respectively. For the nine months ended December 31, 2019 and 2018, these amounts totaled approximately $36,000 and $64,000 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. For the nine months ended December 31, 2019 and 2018 we estimated our effective tax rate to be approximately 22%. As of December 31, 2019 and March 31, 2019, the Company had gross deferred tax assets of approximately $1,053,000 and $758,000, respectively. The Company recorded an income tax benefit of approximately $240,000 and an income tax provision of approximately $367,000 for the three months ended December 31, 2019 and 2018, respectively. The Company recorded an income tax benefit of approximately $295,000 and an income tax provision of $422,000 for the nine months ended December 31, 2019 and 2018, 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, 2019, 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.
Computation of Earnings (Loss) Per Share	COMPUTATION OF EARNINGS (LOSS) 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. As of December 31, 2019 and 2018 total potential dilutive shares from common stock options amounted to approximately 2,250,000 and 2,350,000 shares, respectively. These shares were not included in the computation of diluted earnings per share for the three and nine months ended December 31, 2019 because their effect was anti-dilutive. These shares were included in the computation of diluted earnings per share for the three and nine months ended December 31, 2018.
Adoption of New Accounting Standards	ADOPTION OF NEW ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Topic 842, as amended, “Leases”. The ASU requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than twelve months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. On April 1, 2019, the Company adopted the new lease standard using the optional transition method under which comparative financial information will not be restated and continue to apply the provisions of the previous lease standard in its disclosures for the comparative periods. (See Note 7– LEASES). The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date. The liability is equal to the present value of the remaining minimum lease payments. The asset is based on the liability, subject to certain adjustments. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard) while finance leases result in a front-loaded expense pattern (similar to capital leases under the prior accounting standard). As the interest rate implicit in the Company’s operating leases is not readily determinable, the Company utilizes its incremental borrowing rate to discount the lease payments. The Company utilizes the implicit rate for its finance leases.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740). In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses” (Topic 326)

Summary of Accounting Policie_2

Summary of Accounting Policies (Tables)	9 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	Revenue is derived from four different major product lines. Disaggregated revenue from these product lines for the three and nine months ended December 31, 2019 and 2018 consisted of the following: Revenue by Product Line Three Months Ended Nine Months Ended Product Line 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Classic Karaoke Machines $ 10,336,078 $ 10,740,373 $ 29,067,908 $ 28,014,115 Download Karaoke Machines 3,636,057 7,343,426 5,534,065 12,750,096 SMC Kids Toys 339,577 334,150 967,939 2,036,623 Music and Accessories 1,207,804 1,034,501 4,840,486 2,793,072 Total Net Sales $ 15,519,516 $ 19,452,450 $ 40,410,398 $ 45,593,906

Inventories, Net (Tables)

Inventories, Net (Tables)	9 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are comprised of the following components: December 31, 2019 March 31, 2019 Finished Goods $ 6,062,661 $ 5,679,245 Estimated Amount of Future Returns 2,444,253 599,066 Subtotal 8,506,914 6,278,311 Less:Inventory Reserve 404,000 254,000 Inventories, net $ 8,102,914 $ 6,024,311

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	A summary of property and equipment is as follows: USEFUL December 31, March 31, LIFE 2019 2019 Computer and office equipment 5 years $ 444,935 $ 140,575 Furniture and fixtures 7 years 98,410 98,410 Warehouse equipment 7 years 195,401 209,419 Molds and tooling 3-5 years 1,680,022 1,466,837 2,418,768 1,915,241 Less: Accumulated depreciation 1,574,522 1,392,331 $ 844,246 $ 522,910

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Supplemental Information Related to Leases	Supplemental balance sheet information related to leases as of December 31, 2019 is as follows: Assets: Operating lease - right-of-use assets $ 710,961 Finance leases as a component of property and equipment, net of accumulated depreciation of $10,363 33,163 Liabilities Current Current portion of operating leases $ 445,322 Current portion of finance leases 14,816 Noncurrent Operating lease liabilities, net of current portion $ 349,880 Finance leases, net of current portion 6,340 Supplemental statement of operations information related to leases for the three and nine months ended December 31, 2019 is as follows: Three Months Ended Nine Months December 31 2019 December 31 2019 Operating lease expense as a component of general and administrative expenses $ 148,725 $ 446,173 Finance lease cost Depreciation of leased assets as a component of depreciation $ 1,554 $ 4,664 Interest on lease liabilities as a component of interest expense $ 217 $ 750 Supplemental cash flow information related to leases for the nine months ended December 31, 2019 is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow paid for operating leases $ 487,971 Financing cash flow paid for finance leases $ 10,757
Schedule of Lease term and Discount Rate	Lease term and Discount Rate Weighted average remaining lease term (months) 32.6 Operating leases 17.0 Finance leases Weighted average discount rate Operating leases 6.25 % Finance leases 3.68 %
Schedule of Future Minimum Rental Payments for Operating and Finance Leases	Scheduled maturities of operating and finance lease liabilities outstanding as of December 31, 2019 are as follows: Year Operating Leases Finance Leases 2020, for the remaining 3 months $ 163,179 $ 3,837 2021 348,531 15,347 2022 115,812 2,558 2023 117,638 - 2024 121,167 - Total Minimum Future Payments 866,327 21,741 Less: Imputed Interest 71,125 585 Present Value of Lease Liabilities $ 795,202 $ 21,156

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Summary of Stock Option Activity	A summary of stock option activity for the nine months ended December 31, 2019 is summarized below: December 31, 2019 Number of Options Weighted Average Exercise Stock Options: Balance at beginning of period 2,210,000 $ 0.25 Granted 100,000 $ 0.38 Exercised (60,000 ) $ 0.17 Balance at end of period 2,250,000 $ 0.26 Options exercisable at end of period 2,150,000 $ 0.25
Schedule of Employee Stock Options Outstanding	The following table summarizes information about employee stock options outstanding at December 31, 2019: Range of Exercise Price Number Weighted Average Remaining Contractural Life Weighted Average Exercise Price Number Weighted Average Exercise Price $.03 - $.32 1,570,000 3.5 $ 0.16 1,570,000 $ 0.16 $.38 - $.55 680,000 8.1 $ 0.42 580,000 $ 0.50 * 2,250,000 2,150,000 * Total number of options outstanding as of December 31, 2019 includes 500,000 options issued to five current and two former directors as compensation and 1,150,000 options issue to key employees that were not issued from the Plan.

Geographical Information (Table

Geographical Information (Tables)	9 Months Ended
	Dec. 31, 2019
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, 2019 2018 2019 2018 North America $ 14,087,271 $ 18,627,982 $ 34,964,607 $ 41,704,128 Europe 1,396,148 679,499 4,935,548 3,657,429 Australia 36,097 100,768 510,243 179,923 Others - 44,201 - 52,426 $ 15,519,516 $ 19,452,450 $ 40,410,398 $ 45,593,906

Reserve for Sales Returns (Tabl

Reserve for Sales Returns (Tables)	9 Months Ended
	Dec. 31, 2019
Reserve For Sales Returns
Schedule of Reserve for Sales Returns	Changes in the Company’s reserve for sales returns are presented in the following table: December 31, 2019 December 31, 2018 Reserve for sales returns at beginning of the period $ 896,154 $ 726,000 Provision for estimated sales returns 6,757,115 3,235,305 Sales returns received (3,106,951 ) (1,910,819 ) Reserve for sales returns at end of the period $ 4,546,317 $ 2,050,486

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Damaged goods		$ 48,000		$ 1,691,000
Reduction of net sales		46,000		1,580,000
Survey fees		2,000		2,000
Freight charges				109,000
Additional related expenses		127,000		346,000
Refund due to customer		510,833		510,833		$ 31,075
Payment of chargebacks by customer		1,691,000		1,691,000
Payment remittances		1,181,000		1,181,000
Insurance claim receivable		1,286,158		$ 1,286,158
Revolving credit facility expiration date				Jul. 15, 2020
Line of credit description				PNC implemented loan pricing increase of .5% until March 31, 2020 which will continue until the Company achieves compliance with the original fixed charge coverage ratio test of 1.1:1.
Net income loss		$ (757,949)	$ 1,290,013	$ (1,003,308)	$ 1,473,291
Forebearance Agreement [Member] | PNC Bank National Association [Member]
Revolving credit facility expiration date	Mar. 31, 2020
Line of credit facility	$ 1,000,000
Ebitda, third quarter ending december 31, 2019				400,000
Ebitda, six months ending march 31, 2020				0
Ebitda, twelve months ending march 31, 2020				$ (83,000)

Summary of Accounting Policie_3

Summary of Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Line Items]
Percentage of reserves for customers			100.00%
Foreign financial institutions actual deposits	$ 426,000		$ 426,000		$ 211,000
Future inventory returns	2,444,000		2,444,000		599,000
Inventory reserves	404,000		404,000		254,000
Reserve for sales returns	4,546,317	$ 2,050,486	4,546,317	$ 2,050,486	896,154	$ 726,000
Stock option expense	5,000	10,000	15,000	30,000
Advertising expense	2,040,000	1,328,000	3,820,000	2,877,000
Accrued cooperative advertising allowances	1,689,000		1,689,000		185,000
Research and development costs	13,000	27,000	$ 36,000	$ 64,000
Effective tax rate			22.00%	22.00%
Net deferred tax assets	1,053,000		$ 1,053,000		$ 758,000
Income Tax (provision) benefit	$ 240,042	$ (367,255)	$ 294,633	$ (422,000)
Percentage of tax benefits recognized likelihood of being realized			greater than 50%
Total potential dilutive shares from common stock options			2,250,000	2,350,000
Minimum [Member]
Accounting Policies [Line Items]
Cooperative advertising allowance, percentage			1.00%
Maximum [Member]
Accounting Policies [Line Items]
Cooperative advertising allowance, percentage			13.00%

Summary of Accounting Policie_4

Summary of Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Net Sales	$ 15,519,516	$ 19,452,450	$ 40,410,398	$ 45,593,906
Classic Karaoke Machines [Member]
Net Sales	10,336,078	10,740,373	29,067,908	28,014,115
Download Karaoke Machines [Member]
Net Sales	3,636,057	7,343,426	5,534,065	12,750,096
SMC Kids Toys [Member]
Net Sales	339,577	334,150	967,939	2,036,623
Music and Accessories [Member]
Net Sales	$ 1,207,804	$ 1,034,501	$ 4,840,486	$ 2,793,072

Inventories, Net - Schedule of

Inventories, Net - Schedule of Inventory (Details) - USD ($)	Dec. 31, 2019	Mar. 31, 2019
Inventory Disclosure [Abstract]
Finished Goods	$ 6,062,661	$ 5,679,245
Estimated Cost of Future Returns	2,444,253	599,066
Subtotal	8,506,914	6,278,311
Less: Inventory Reserve	404,000	254,000
Total Inventories	$ 8,102,914	$ 6,024,311

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 77,161	$ 64,357	$ 196,210	$ 200,138

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($)	9 Months Ended
	Dec. 31, 2019	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,418,768	$ 1,915,241
Less: Accumulated depreciation	1,574,522	1,392,331
Property and equipment, net	$ 844,246	522,910
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	5 years
Property and equipment, gross	$ 444,935	140,575
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	7 years
Property and equipment, gross	$ 98,410	98,410
Warehouse Equipment [Member]
Property, Plant and Equipment [Line Items]
Average useful life (in years)	7 years
Property and equipment, gross	$ 195,401	209,419
Molds and Tooling [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,680,022	$ 1,466,837
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

Bank Financing (Details Narrati

Bank Financing (Details Narrative) - USD ($)	Jun. 22, 2017	Nov. 30, 2019	Aug. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Mar. 31, 2019
Line of Credit Facility [Line Items]
Line of credit facility, expiration date						Jul. 15, 2020
Revolving line of credit				$ 0		$ 0			$ 0
Line of credit facility, description						PNC implemented loan pricing increase of .5% until March 31, 2020 which will continue until the Company achieves compliance with the original fixed charge coverage ratio test of 1.1:1.
First priority security ownership interest percentage				100.00%		100.00%
Line of credit facility, collateral amount				$ 803,000		$ 803,000
Amortization of deferred financing costs				3,334	$ 3,333	10,000	$ 10,000
Subordinated Debt [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum amount outstanding during period						$ 815,000
Line of credit facility, interest rate during period						6.00%
Incurred interest expense			$ 12,500
Repayments of lines of credit						$ 815,000
Line of credit facility, periodic payment				123,000		123,000
Outstanding balance			12,500	123,000		123,000
Payment of debt			$ 25,000
Interest expense, related party				0	7,000	0	20,000
Line of credit, remaining borrowing capacity				$ 803,000		$ 803,000			$ 815,000
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 borrowing capacity				$ 15,000,000		$ 15,000,000
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 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.
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 $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.
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 $375,000 per year.
Line of credit facility, interest rate during period						0.75%
Line of credit facility, LIBOR Rate plus rate				2.75%		2.75%
Line of credit facility default rate						2.00%
Line of credit facility, unused capacity, commitment fee percentage						0.375%
Incurred interest expense				$ 86,000	100,000	$ 119,000	155,000
Incurred unused facility fee amount				10,000	8,000	30,000	23,000
Cost associated with Revolving credit facility deferred						40,000
Amortization of deferred financing costs				3,000	$ 3,000	$ 10,000	$ 10,000
Revolving Credit Facility [Member] | Forebearance Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit facility, description		In November 2019, the Company entered into a Forbearance Agreement with PNC whereby PNC 'forbears' taking action it would be entitled to under a default through March 31, 2020 and would continue forbearance actions provided the Company continued to meet compliance with certain conditions				Upon execution of the Forbearance Agreement there was a pricing rate increase of .5% on the .75% per annum rate and the PNC LIBOR Rate plus 2.75%
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
PNC Bank National Association [Member] | Term Loan [Member]
Line of Credit Facility [Line Items]
Repayments of lines of credit								$ 125,000
PNC Bank National Association [Member] | Forebearance Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit facility, expiration date		Mar. 31, 2020

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative)	Jun. 18, 2019USD ($)	Jun. 04, 2018USD ($)	May 25, 2018USD ($)	May 01, 2018USD ($)ft²	Oct. 01, 2017USD ($)ft²	Jun. 01, 2013USD ($)ft²	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Mar. 31, 2019USD ($)
Commitments And Contingencies [Line Items]
Monthly lease payments									$ 10,757
Current portion of installment notes							49,016		49,016
Installment notes, net of current portion							227,520		227,520
Interest expense on installment note							105,583	$ 139,729	156,097	$ 235,290
Dimension Funding, LLC [Member]
Commitments And Contingencies [Line Items]
Principal amount of installment notes							276,000		276,000
Current portion of installment notes							49,000		49,000
Installment notes, net of current portion							227,000		227,000
Interest expense on installment note							3,000		10,000
Dimension Funding, LLC [Member] | Project Consultant [Member]
Commitments And Contingencies [Line Items]
Advance financing payments							$ 108,000		$ 284,000
Operating Lease Agreement [Member]
Commitments And Contingencies [Line Items]
Operating lease space for office | ft²				424	6,500	86,000
Lease expiration date				Apr. 30, 2021	Mar. 31, 2024	Aug. 31, 2020
Rent expense				$ 1,600	$ 8,800	$ 43,700
Lease term						87 months
Lease extend term						The lease provides for a renewal option to extend the lease term for 5 years at the fair market value at the time of renewal.
Long-Term Capital Leasing Arrangements [Member] | Wells Fargo Equipment Finance [Member]
Commitments And Contingencies [Line Items]
Financing lease costs		$ 44,000	$ 44,000
Monthly lease payments		$ 1,279	$ 1,279
Financing lease term		36 months	36 months
Effective interest rate		4.50%	4.50%
Financing Arrangement [Member] | Dimension Funding, LLC [Member]
Commitments And Contingencies [Line Items]
Financing lease costs	$ 375,000
Monthly lease payments	$ 5,785
Financing lease term	60 months
Effective interest rate	8.20%
Security interest	100.00%

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Supplemental Information Related to Leases (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease - right-of-use assets	$ 710,961	$ 710,961
Finance leases as a component of property and equipment, net of accumulated depreciation of $10,363	33,163	33,163
Current portion of operating leases	445,322	445,322
Current portion of finance leases	14,816	14,816	14,414
Operating lease liabilities, net of current portion	349,880	349,880
Finance leases, net of current portion	6,340	6,340	$ 17,499
Operating lease expense as a component of general and administrative expenses	148,725	446,173
Finance lease cost Depreciation of leased assets as a component of depreciation	1,554	4,664
Finance lease cost Interest on lease liabilities as a component of interest expense	217	750
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow paid for operating leases		487,971
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flow paid for finance leases		$ 10,757

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Supplemental Information Related to Leases (Details) (Parenthetical)	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Finance leases Property and equipment accumulated depreciation	$ 10,363

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Lease term and Discount Rate (Details)	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Weighted average remaining lease term (months), Operating leases	32 years 7 months 6 days
Weighted average remaining lease term (months), Finance leases	17 years
Weighted average discount rate, Operating leases	6.25%
Weighted average discount rate, Finance leases	3.68%

Commitments and Contingencies_5

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating and Finance Leases (Details)	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, 2020, for the remaining 3 months	$ 163,179
Operating Leases, 2021	348,531
Operating Leases, 2022	115,812
Operating Leases, 2023	117,638
Operating Leases, 2024	121,167
Operating Leases, Total Minimum Future Payments	866,327
Operating Leases, Less: Imputed Interest	71,125
Operating Leases, Present Value of Lease Liabilities	795,202
Finance Leases, 2020, for the remaining 3 months	3,837
Finance Leases, 2021	15,347
Finance Leases, 2022	2,558
Finance Leases, 2023
Finance Leases, 2024
Finance Leases, Total Minimum Future Payments	21,741
Finance Leases, Less: Imputed Interest	585
Finance Leases, Present Value of Lease Liabilities	$ 21,156

Stock Options (Details Narrativ

Stock Options (Details Narrative)	9 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of stock options shares issued | shares	100,000
Stock options exercise price per share | $ / shares	$ .38
Expected dividend yield	0.00%
Risk-free interest rate	2.08%
Volatility	112.30%
Expected term	3 years
Unrecognized expense	$ 5,000
Unrecognized expense, options vesting period	3 months
Intrinsic value of vested options	$ 134,000

Stock Options - Summary of Stoc

Stock Options - Summary of Stock Option Activity (Details)	9 Months Ended
	Dec. 31, 2019$ / sharesshares
Number of Options Granted | shares	100,000
Weighted Average Exercise Price Granted | $ / shares	$ .38
Stock Option [Member]
Number of Options, Balance at Beginning of Period | shares	2,210,000	[1]
Number of Options Granted | shares	100,000
Number of Options Exercised | shares	(60,000)
Number of Options, Balance at End of Period | shares	2,250,000
Number of Options, Exercisable at End of Period | shares	2,150,000
Weighted Average Exercise Price, Balance at Beginning of Period | $ / shares	$ 0.25	[1]
Weighted Average Exercise Price Granted | $ / shares	0.38
Weighted Average Exercise Price Exercised | $ / shares	0.17
Weighted Average Exercise Price, Balance at End of Period | $ / shares	0.26
Weighted Average Exercise Price, Options Exercisable at End of Period | $ / shares	$ 0.25
[1]	Total number of options outstanding as of March 31, 2019 includes 460,000 options issued to five current and two former directors as compensation and 1,150,000 options issue to key employees that were not issued from the Plan.

Stock Options - Schedule of Emp

Stock Options - Schedule of Employee Stock Options Outstanding (Details)	9 Months Ended
	Dec. 31, 2019$ / sharesshares
Stock Options Number Outstanding | shares	2,250,000	[1]
Stock Option Number Exercisable | shares	2,150,000	[1]
Exercise Price Range One [Member]
Stock Options Outstanding Exercise Price, Lower Range Limit	$ .03
Stock Options Outstanding Exercise Price, Upper Range Limit	$ .32
Stock Options Number Outstanding | shares	1,570,000
Stock Option Outstanding Weighted Average Remaining Contractual Life	3 years 6 months
Stock Option Outstanding Weighted Average Exercise Price	$ 0.16
Stock Option Number Exercisable | shares	1,570,000
Stock Option Exercisable Weighted Average Exercise Price	$ 0.16
Exercise Price Range Two [Member]
Stock Options Outstanding Exercise Price, Lower Range Limit	.38
Stock Options Outstanding Exercise Price, Upper Range Limit	$ .55
Stock Options Number Outstanding | shares	680,000
Stock Option Outstanding Weighted Average Remaining Contractual Life	8 years 1 month 6 days
Stock Option Outstanding Weighted Average Exercise Price	$ 0.42
Stock Option Number Exercisable | shares	580,000
Stock Option Exercisable Weighted Average Exercise Price	$ 0.50
[1]	Total number of options outstanding as of December 31, 2019 includes 500,000 options issued to five current and two former directors as compensation and 1,150,000 options issue to key employees that were not issued from the Plan.

Stock Options - Schedule of E_2

Stock Options - Schedule of Employee Stock Options Outstanding (Details) (Parenthetical)	Dec. 31, 2019shares
Five Current and Two Former Directors [Member]
Stock options outstanding	500,000
Employees [Member]
Stock options outstanding	1,150,000

Common Stock Issuances (Details

Common Stock Issuances (Details Narrative) - USD ($)	Jun. 12, 2019	Dec. 31, 2019	Dec. 31, 2019
Number of common stock shares issued, value			$ 12,500
Board of Directors [Member]
Number of common stock shares issued	32,890
Shares issued price per share	$ 0.38
Number of common stock shares issued, value		$ 0	$ 12,500

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, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net Sales	$ 15,519,516	$ 19,452,450	$ 40,410,398	$ 45,593,906
North America [Member]
Segment Reporting Information [Line Items]
Net Sales	14,087,271	18,627,982	34,964,607	41,704,128
Europe [Member]
Segment Reporting Information [Line Items]
Net Sales	1,396,148	679,499	4,935,548	3,657,429
Australia [Member]
Segment Reporting Information [Line Items]
Net Sales	36,097	100,768	510,243	179,923
Others [Member]
Segment Reporting Information [Line Items]
Net Sales		$ 44,201		$ 52,426

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Related Party Transaction [Line Items]
Due from related parties, current	$ 1,184,000		$ 1,184,000		$ 289,000
Due to related parties	400,000		400,000		0
Warehouse Facility [Member]
Related Party Transaction [Line Items]
Revenue from related parties	45,000	$ 16,000	284,000	$ 655,000
Winglight Pacific Ltd [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 0	$ 33,000	$ 852,000	$ 1,183,000
Related party gross margin percentage	0.00%	23.90%	23.70%	30.00%
Starlight Electronics Co., Ltd [Member]
Related Party Transaction [Line Items]
Incurred service expenses from related party	$ 91,000	$ 87,000	$ 282,000	$ 268,000
Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Line of credit facility interest rate			0.75%
Revolving Credit Facility [Member] | Subordinate Debt [Member]
Related Party Transaction [Line Items]
Line of credit facility, maximum amount outstanding during period			$ 924,000
Line of credit facility interest rate			6.00%
Line of credit facility, periodic payment			$ 123,000
Debt maturity date			Jun. 30, 2019
Line of credit outstanding	803,000		$ 803,000		$ 815,000
Repayments of lines of credit			123,000
Payment of debt			25,000
Interest expense, related party	$ 0	$ 4,000	$ 0	$ 20,000

Reserve for Sales Returns - Sch

Reserve for Sales Returns - Schedule of Reserve for Sales Returns (Details) - USD ($)	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reserve For Sales Returns
Reserve for sales returns at beginning of the period	$ 896,154	$ 726,000
Provision for estimated sales returns	6,757,115	3,235,305
Sales returns received	(3,106,951)	(1,910,819)
Reserve for sales returns at end of the period	$ 4,546,317	$ 2,050,486

Refunds Due to Customers (Detai

Refunds Due to Customers (Details Narrative) - USD ($)	Dec. 31, 2019	Mar. 31, 2019
Refund due to customer	$ 510,833	$ 31,075
One Major Customer [Member]
Refund due to customer	1,691,000
Deducted on payment remittances	$ 1,181,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Defined contribution plan, administrative expenses	$ 15,000	$ 18,000	$ 47,000	$ 51,000

Concentrations of Credit and _2

Concentrations of Credit and Sales Risk (Details Narrative)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Accounts Receivable [Member] | Five Customers [Member]
Concentration of sales risk, percentage			10.00%
Accounts Receivable [Member] | Five Customers [Member] | North America [Member]
Concentration of sales risk, percentage			74.00%
Accounts Receivable [Member] | Three Customers [Member]
Concentration of sales risk, percentage					10.00%
Accounts Receivable [Member] | Three Customers [Member] | North America [Member]
Concentration of sales risk, percentage					62.00%
Sales Revenue [Member] | Five Customers [Member]
Concentration of sales risk, percentage		10.00%		10.00%
Sales Revenue [Member] | Three Customers [Member]
Concentration of sales risk, percentage			10.00%
Sales Revenue [Member] | Four Customers [Member]
Concentration of sales risk, percentage	10.00%
Sales Revenue [Member] | Customer One [Member]
Concentration of sales risk, percentage	27.00%	34.00%	39.00%	37.00%
Sales Revenue [Member] | Customer Two [Member]
Concentration of sales risk, percentage	17.00%	17.00%	13.00%	14.00%
Sales Revenue [Member] | Customer Three [Member]
Concentration of sales risk, percentage	13.00%	16.00%	10.00%	13.00%
Sales Revenue [Member] | Customer Four [Member]
Concentration of sales risk, percentage	12.00%	13.00%		12.00%
Sales Revenue [Member] | Customer Five [Member]
Concentration of sales risk, percentage		13.00%		10.00%