Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 15, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41405 | |
Entity Registrant Name | SINGING MACHINE CO INC | |
Entity Central Index Key | 0000923601 | |
Entity Tax Identification Number | 95-3795478 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 6301 NW 5th Way | |
Entity Address, Address Line Two | Suite 2900 | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33309 | |
City Area Code | (954) | |
Local Phone Number | 596-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | MICS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,418,061 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash | $ 4,125,000 | $ 6,703,000 |
Inventory | 6,493,000 | 6,871,000 |
Returns asset | 1,262,000 | 1,919,000 |
Prepaid expenses and other current assets | 214,000 | 136,000 |
Total Current Assets | 15,532,000 | 23,206,000 |
Property and equipment, net | 352,000 | 404,000 |
Operating leases - right of use assets | 3,841,000 | 3,926,000 |
Other non-current assets | 179,000 | 179,000 |
Total Assets | 19,904,000 | 27,715,000 |
Current Liabilities | ||
Accounts payable | 3,947,000 | 7,616,000 |
Accrued expenses | 2,315,000 | 2,614,000 |
Refund due to customer | 1,443,000 | 1,743,000 |
Customer prepayments | 408,000 | 687,000 |
Reserve for sales returns | 2,419,000 | 3,390,000 |
Other current liabilities | 58,000 | 75,000 |
Current portion of operating lease liabilities | 55,000 | 84,000 |
Total Current Liabilities | 10,645,000 | 16,209,000 |
Other liabilities, net of current portion | 3,000 | |
Operating lease liabilities, net of current portion | 4,029,000 | 3,925,000 |
Total Liabilities | 14,674,000 | 20,137,000 |
Shareholders’ Equity | ||
Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding | ||
Common stock $0.01 par value; 100,000,000 shares authorized; 6,418,061 issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 64,000 | 64,000 |
Additional paid-in capital | 33,448,000 | 33,429,000 |
Accumulated deficit | (28,282,000) | (25,915,000) |
Total Shareholders’ Equity | 5,230,000 | 7,578,000 |
Total Liabilities and Shareholders’ Equity | 19,904,000 | 27,715,000 |
Nonrelated Party [Member] | ||
Current Assets | ||
Accounts receivable | 3,305,000 | 7,308,000 |
Related Party [Member] | ||
Current Assets | ||
Accounts receivable | $ 133,000 | $ 269,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, net | $ 275,000 | $ 174,000 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 6,418,061 | 6,418,061 |
Common stock, shares outstanding | 6,418,061 | 6,418,061 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net Sales | $ 2,426,000 | $ 3,383,000 |
Cost of Goods Sold | 1,924,000 | 2,564,000 |
Gross Profit | 502,000 | 819,000 |
Operating Expenses | ||
Selling expenses | 630,000 | 812,000 |
General and administrative expenses | 2,159,000 | 2,153,000 |
Total Operating Expenses | 2,789,000 | 2,965,000 |
Loss from Operations | (2,287,000) | (2,146,000) |
Other (Expenses) Income | ||
Gain from Employee Retention Credit Program refund | 704,000 | |
Other Expense | (1,000) | |
Interest expense | (28,000) | (40,000) |
Total Other (Expenses) Income, net | (28,000) | 663,000 |
Loss Before Income Tax Provision | (2,315,000) | (1,483,000) |
Income Tax Provision | (52,000) | (1,502,000) |
Net Loss | $ (2,367,000) | $ (2,985,000) |
Loss per Common Share Basic | $ (0.37) | $ (0.96) |
Loss per Common Share Diluted | $ (0.37) | $ (0.96) |
Weighted Average Common and Common Equivalent Shares: | ||
Weighted Average Common and Common Equivalent Shares: Basic | 6,418,061 | 3,114,397 |
Weighted Average Common and Common Equivalent Shares: Diluted | 6,418,061 | 3,114,397 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Other [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2022 | $ 31,000 | $ 29,699,000 | $ (16,532,000) | $ 13,198,000 | |
Balance, shares at Dec. 31, 2022 | 3,148,219 | ||||
Net Income | (2,985,000) | (2,985,000) | |||
Employee compensation-stock option | 74,000 | 74,000 | |||
Issuance of common stock | 36,000 | 36,000 | |||
Issuance of common stock, shares | 5,039 | ||||
Exercise of pre-funded common stock warrants | 14,000 | 14,000 | |||
Exercise of pre-funded warrants, shares | 14,230 | ||||
Other | $ 1,000 | (1,000) | (6,000) | (6,000) | |
Balance at Mar. 31, 2023 | $ 32,000 | 29,822,000 | (6,000) | (19,517,000) | 10,331,000 |
Balance, shares at Mar. 31, 2023 | 3,167,488 | ||||
Balance at Dec. 31, 2023 | $ 64,000 | 33,429,000 | (25,915,000) | 7,578,000 | |
Balance, shares at Dec. 31, 2023 | 6,418,061 | ||||
Net Income | (2,367,000) | (2,367,000) | |||
Employee compensation-stock option | 19,000 | 19,000 | |||
Balance at Mar. 31, 2024 | $ 64,000 | $ 33,448,000 | $ (28,282,000) | $ 5,230,000 | |
Balance, shares at Mar. 31, 2024 | 6,418,061 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (2,367,000) | $ (2,985,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 52,000 | 55,000 |
Provision for estimated cost of returns | 658,000 | 1,380,000 |
Provision for inventory obsolescence | 139,000 | |
Credit losses | 101,000 | 27,000 |
Loss from disposal of property and equipment | 3,000 | |
Stock based compensation | 19,000 | 74,000 |
Amortization of right of use assets | 84,000 | 87,000 |
Change in net deferred tax assets | 1,399,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,902,000 | 4,922,000 |
Accounts receivable - related parties | 136,000 | 43,000 |
Inventories | 379,000 | (175,000) |
Prepaid expenses and other current assets | (78,000) | 40,000 |
Other non-current assets | (156,000) | |
Accounts payable | (3,669,000) | (315,000) |
Accrued expenses | (299,000) | (970,000) |
Refunds due to customer | (300,000) | 490,000 |
Prepaids from customers | (279,000) | |
Reserve for sales returns | (971,000) | (2,035,000) |
Operating lease liabilities | 75,000 | (89,000) |
Net cash (used in) provided by operating activities | (2,557,000) | 1,934,000 |
Cash flows from investing activities | ||
Purchase of property and equipment | (95,000) | |
Net cash used in investing activities | (95,000) | |
Cash flows from financing activities | ||
Proceeds from issuance of stock, net of offering costs | 36,000 | |
Subscriptions receivable | (6,000) | |
Net payment on revolving lines of credit | (1,761,000) | |
Payments on installment notes | (21,000) | (19,000) |
Proceeds from exercise of common stock warrants | 14,000 | |
Payments on finance leases | (3,000) | |
Net cash used in financing activities | (21,000) | (1,739,000) |
Net change in cash | (2,578,000) | 100,000 |
Cash at beginning of year | 6,703,000 | 2,795,000 |
Cash at end of period | 4,125,000 | 2,895,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 27,000 | 24,000 |
Non-Cash investing and financing cash flow information: | ||
Equipment purchased under capital lease | $ 55,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) | $ (2,367,000) | $ (2,985,000) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
NATURE OF BUSINESS
NATURE OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NOTE 1 – NATURE OF BUSINESS We are primarily engaged in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings. We are a global karaoke and music entertainment company that specializes in the design and production of quality karaoke and music enabled consumer products for adults and children. The Singing Machine’s operations include its wholly owned subsidiaries, SMC Logistics, Inc., a California corporation (“SMCL”), SMC-Music, Inc., a Florida corporation (“SMCM”), SMC (HK) Limited, a Hong Kong company (“SMH”), MICS Hospitality Holdings, Inc., a Delaware corporation (“MICS Hospitality”), MICS Hospitality Management, LLC, a Delaware limited liability company (“MICS Hospitality Management”) and MICS Nomad, LLC, a Delaware limited liability company (“MICS NY”). |
RECENT DEVELOPMENTS
RECENT DEVELOPMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Recent Developments | |
RECENT DEVELOPMENTS | NOTE 2 - RECENT DEVELOPMENTS Change in Fiscal Year During 2023, our Board of Directors approved a change in our fiscal year end from March 31 to December 31. Our results of operations, cash flows, and all transactions impacting shareholders’ equity presented in this Quarterly Report on Form 10-Q as of March 31, 2024 are for the three-month period ended March 31, 2024 and March 31, 2023. Private Placement On November 20, 2023, the Company entered into an agreement to sell $ 2,000,000 0.91 2,198,000 1,900,000 100,000 Hospitality Lease On August 23, 2023, MICS NY entered into an Agreement of Lease (the “Lease Agreement”) with OAC 111 Flatiron, LLC and OAC Adelphi, LLC (the “Landlord”), pursuant to which MICS NY agreed to lease approximately 10,000 th The term of the Lease Agreement is for fifteen ( 15 30,000 In March 2024, the Company initiated the termination of this lease under certain provisions made available under the Lease Agreement. The Landlord and the Company are in active discussions as to the terms of the lease termination however as of this filing, it is too early in the negotiation process to estimate any potential loss, if any, related to the lease termination process. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) ATM Offering On February 15, 2023, the Company entered into an At-The-Market Issuance Sales Agreement (the “Sales Agreement”) with Aegis Capital Corp, as sales agent (the “Agent”), pursuant to which the Company could offer and sell, from time to time, through the Agent (the “ATM Offering”), up to approximately $ 1,800,000 0 36,000 |
LIQUIDITY, GOING CONCERN AND MA
LIQUIDITY, GOING CONCERN AND MANAGEMENT PLANS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY, GOING CONCERN AND MANAGEMENT PLANS | NOTE 3 – LIQUIDITY, GOING CONCERN AND MANAGEMENT PLANS As of March 31, 2024, the Company had cash on hand of approximately $ 4,125,000 The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Management intends to finance operations with future debt or equity financings, however, if and when such financings may occur are uncertain. In making this assessment management performed a comprehensive analysis of the Company’s current circumstances including: its financial position, cash flow and cash usage forecasts, and obligations and debts. Although management has a recent history of successful capital raises, the analysis used to determine the Company’s ability as a going concern does not include cash sources outside the Company’s direct control that management expects to be available within the next 12 months. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements for the three months ended March 31, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by US GAAP 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 as of March 31, 2024 and condensed financial statements information for the three months ended March 31, 2024 and 2023 are unaudited whereas the condensed consolidated balance sheet as of December 31, 2023 is derived from the audited consolidated balance sheet as of that date. The condensed consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-KT for the transition period ended December 31, 2023. There have been no changes to our significant accounting policies as disclosed on the Company’s annual report on Form 10-KT for the transition period ended December 31, 2023. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) RECENT ACCOUNTING PRONOUNCEMENTS In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
FINANCING
FINANCING | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
FINANCING | NOTE 5 – FINANCING Oxford Credit Facility On March 28, 2024, the Company entered into a Loan and Security Agreement with Oxford Business Credit (the “Credit Agreement”), as Lender. The Credit Agreement established a secured asset-backed revolving credit facility which is comprised of a maximum $ 2,000,000 Borrowings under the Credit Facility take the form of base rate loans at interest rates of the Wall Street Journal Prime Rate plus 2.5 10 25,000 The Credit Agreement is for a two November 28, 2026 The Company is subject to a two percent ( 2 Fifth Third Bank Asset-backed Revolving Credit Facility On October 14, 2022, the Company entered into a Loan and Security Agreement with Fifth Third Financial Corporation (the “Credit Agreement”), as Lender, replacing the Company’s credit facilities with Crestmark and IHC that were terminated by the Company on October 13, 2022. The Credit Agreement established a secured asset-backed revolving credit facility which is comprised of a maximum $ 15,000,000 November 17, 2023 Costs associated with closing of the Credit Agreement of approximately $ 254,000 0 21,000 The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) Borrowings under the Credit Facility took the form of base rate loans at interest rates of the greater of either (a) the Prime Rate plus 0.50% or (b) the Secured Overnight Financing Rate (“SOFR”) 30-day term rate plus 3%, subject to a minimum of 0.050% in either case. During the three months ended March 31, 2024, and 2023, the Company incurred interest expense of approximately $ 0 36,000 On May 19, 2023, the Company executed a Waiver and First Amendment agreement which provides for a waiver of previous defaults and instituted new covenants. On August 30, 2023, the Company entered into a Waiver and Second Amendment (the “Revolving Loan Amendment”) to the Credit Agreement. The Revolving Loan Amendment provides for, among other things, (i) a waiver of all known existing defaults under the Credit Agreement as of the date of the Revolving Loan Amendment and (ii) the amendment of the definition of “Borrowing Base” to reduce from $ 5,000,000 2,000,000 On November 17, 2023, the Company voluntarily terminated the Credit Agreement as the Company could not comply with the debt coverage financial covenant effective September 30, 2023. There was no balance outstanding on the credit agreement as of the termination date. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 - COMMITMENTS AND CONTINGENCIES Hospitality Lease On August 23, 2023, MICS NY entered into an Agreement of Lease (the “Lease Agreement”) with OAC 111 Flatiron, LLC and OAC Adelphi, LLC (the “Landlord”), pursuant to which MICS NY agreed to lease approximately 10,000 th The term of the Lease Agreement is for fifteen ( 15 30,000 In March 2024, the Company initiated the termination of this lease under certain provisions made available under the Lease Agreement. The Landlord and the Company are in active discussions as to the terms of the lease termination however as of this filing, it is too early in the negotiation process to estimate any potential loss, if any, related to the lease termination process. Derivative Litigation On December 21, 2023, Ault Lending, LLC, a wholly owned subsidiary of Ault Alliance, Inc. (“Ault”), one of the Company’s largest shareholders, filed a derivative shareholder action in Delaware Chancery Court against the Company, its Directors, and other Company shareholders (The Stingray Group, Inc. and Regalia Ventures) (“the Defendants”) for alleged breach of fiduciary duty in approving a recent above-market private placement equity transaction. The Complaint alleges the Company, and its Directors followed an inadequate process in evaluating the private placement transaction which occurred back in November 2023 and entered into the transaction with an intent to dilute Ault’s ownership stake in the Company. The Defendants have retained Delaware counsel to represent them in this matter and the Company has filed a motion to dismiss the suit. Other than what is disclosed above, we are not a party to, and our property is not the subject of, any pending material legal proceedings. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) |
OPERATING LEASES
OPERATING LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Operating Leases | |
OPERATING LEASES | NOTE 7 – OPERATING LEASES At the time of this filing, the Company has operating lease agreements for offices in Florida and Hong Kong and a retail location in New York expiring in various years through 2038. The Company entered into an operating lease agreement, effective October 1, 2017, for our corporate headquarters located in Fort Lauderdale, Florida where we lease approximately 6,500 March 31, 2024 9,950 the Company executed a lease extension for 14 months effective April 1, 2024, and expires on May 31, 2025. The base rent on the extension is approximately $10,553 per month subject to a 3% annual adjustment. The Company entered into an operating lease on August 23, 2023, for approximately 10,000 August 22, 2038 30,000 700,000 Supplemental balance sheet information related to leases as of March 31, 2024 and December 31, 2023 is as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Assets: March 31, 2024 December 31, 2023 Operating lease - right-of-use assets $ 3,841,000 $ 3,926,000 Liabilities Current Current portion of operating leases $ 55,000 $ 84,000 Operating lease liabilities, net of current portion $ 4,029,000 $ 3,925,000 Supplemental statement of operations information related to operating leases is as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 Operating lease expense as a component of general and administrative expenses $ 196,000 $ 241,000 Supplemental cash flow information related to operating leases is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow paid for operating leases $ 45,000 $ 252,000 Lease term and Discount Rate Weighted average remaining lease term (years) 14.4 12.4 Weighted average discount rate 11.0 % 6.5 % Minimum future payments under all operating leases as of March 31, 2024, are as follows: SCHEDULE OF OPERATING LEASE MINIMUM FUTURE PAYMENTS Payments due by period Amount 2024 (remaining 9 months) $ 223,000 2025 355,000 2026 529,000 2027 585,000 2028 611,000 Thereafter 7,555,000 Total Minimum Future Payments 9,858,000 Less: Interest 5,774,000 Total operating lease liabilities $ 4,084,000 Less: current portion of lease liabilities 55,000 Operating lease liabilities, net of current portion $ 4,029,000 The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) |
STOCK COMPENSATION EXPENSE
STOCK COMPENSATION EXPENSE | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION EXPENSE | NOTE 8 – STOCK COMPENSATION EXPENSE Equity Incentive Plan On April 12, 2022, the Board of Directors approved The Singing Machine Company, Inc. 2022 Equity Incentive Plan, or the 2022 Plan. The 2022 Plan provides for the issuance of equity incentive awards, such as stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance awards and other stock or cash-based awards collectively, the “Awards.” Awards may be granted under the 2022 Plan to the Company’s employees, officers, directors, consultants, agents, advisors and independent contractors. There was no 1,250 166,719 As of March 31, 2024, there was an unrecognized expense of approximately $ 98,000 fifteen months no Warrants Common warrants issued and outstanding as of March 31, 2024 and December 31, 2023, were 902,113 The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) As of March 31, 2024, the Company’s warrants by expiration date were as follows: SCHEDULE OF WARRANTS EXPIRATION Number of Exercise Price Expiration Date 802,113 $ 2.80 September 15, 2026 100,000 $ 5.00 May 23, 2027 902,113 |
COMPUTATION OF (LOSS) EARNINGS
COMPUTATION OF (LOSS) EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
COMPUTATION OF (LOSS) EARNINGS PER SHARE | NOTE 9 - COMPUTATION OF (LOSS) EARNINGS PER SHARE Computation of basic and dilutive loss per share for the three months ended March 31, 2024 and 2023 are as follows: SCHEDULE OF BASIC AND DILUTIVE LOSS PER SHARE For the three months For the three months Net Loss $ 2,367,000 $ 2,985,000 Weighted-average common and dilutive shares outstanding 6,418,061 3,114,397 Basic and diluted net loss per share (0.37 ) $ (0.96 ) Basic net loss per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution assuming shares of common stock were issued upon the exercise of outstanding in-the-money options and the proceeds thereof were used to purchase shares of the Company’s common stock at the average market price during the period using the treasury stock method. For the three months ended March 31, 2024 and 2023, options to purchase 90,844 53,675 902,113 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - INCOME TAXES The Company’s income tax provision for the three months ended March 31, 2024, was approximately $ 52,000 1,502,000 The Company’s income tax expense differs from the expected tax benefit/expense based on statutory rates primarily due to full valuation allowance for all of its subsidiaries for the three months ended March 31, 2024 and 2023. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) |
REVENUE DISAGGREGATION
REVENUE DISAGGREGATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
REVENUE DISAGGREGATION | NOTE 11 – REVENUE DISAGGREGATION 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: Revenue by product line is as follows: SCHEDULE OF REVENUE BY PRODUCT LINE Product Line March 31, 2024 March,31, 2023 Three Months Ended Product Line March 31, 2024 March,31, 2023 Classic Karaoke Machines $ 942,000 $ 1,571,000 Licensed Products 90,000 - SMC Kids Toys 65,000 133,000 Microphones and Accessories 1,225,000 1,986,000 Streaming Karaoke Machines 104,000 (307,000 ) Total Net Sales $ 2,426,000 $ 3,383,000 Net sales for both of the three months ended March 31, 2024 and 2023 of $ 2,426,000 3,383,000 The Company selectively participates in a retailer’s co-op promotion incentives by providing marketing fund allowances to its customers. As these co-op promotion initiatives are not a distinct good or service and the Company cannot reasonably estimate the fair value of the benefit it receives from these arrangements, the cost of these allowances at the time they are offered to the customers are recorded as a reduction to net sales. For the three months ended March 31, 2024 and 2023, co-op promotion incentives were approximately $ 109,000 172,000 The Company estimates variable consideration under its return allowance programs for goods returned from the customer whereby a revenue return reserve is recorded based on historic return amounts, specific events as identified and management estimates. The Company’s reserve for sales returns as of March 31, 2024 and December 31, 2023, was approximately $ 2,419,000 3,390,000 1,262,000 1,919,000 A return program for defective goods is negotiated with each of the Company’s wholesale customers on a year-to-year basis. Customers are allowed to return defective goods within a specified period of time after shipment (between six and nine 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. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) |
CONCENTRATIONS OF CREDIT RISK A
CONCENTRATIONS OF CREDIT RISK AND REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND REVENUE | NOTE 12 - CONCENTRATIONS OF CREDIT RISK AND REVENUE The Company derives a majority of its revenues from retailers of products in the United States. The Company’s allowance for credit losses is based upon management’s estimates and historical experience and reflects the fact that accounts receivable is concentrated with several large customers. At March 31, 2024, 69 82 Revenues derived from our top three customers for the three months ended March 31, 2024, and 2023, were 84 % and 89 % of total revenue, respectively. Revenues from customers representing greater than 10% of total net sales derived from our top two customers as a percentage of net sales for the three months ended March 31, 2024, were 60 % and 14 %. The loss of any of these customers could have an adverse impact on the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS Due To/From Related Parties Stingray Group, Inc. (“Stingray”) is an existing shareholder with board representation. The Company has a music subscription sharing agreement with Stingray. For the three months ended March 31, 2024, and 2023, amounts earned from the subscription agreement were approximately $ 240,000 218,000 133,000 269,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements for the three months ended March 31, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by US GAAP 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 as of March 31, 2024 and condensed financial statements information for the three months ended March 31, 2024 and 2023 are unaudited whereas the condensed consolidated balance sheet as of December 31, 2023 is derived from the audited consolidated balance sheet as of that date. The condensed consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-KT for the transition period ended December 31, 2023. There have been no changes to our significant accounting policies as disclosed on the Company’s annual report on Form 10-KT for the transition period ended December 31, 2023. The Singing Machine Company, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 and 2023 (Unaudited) |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Operating Leases | |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | Supplemental balance sheet information related to leases as of March 31, 2024 and December 31, 2023 is as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Assets: March 31, 2024 December 31, 2023 Operating lease - right-of-use assets $ 3,841,000 $ 3,926,000 Liabilities Current Current portion of operating leases $ 55,000 $ 84,000 Operating lease liabilities, net of current portion $ 4,029,000 $ 3,925,000 |
SCHEDULE OF LEASE TERM AND DISCOUNT RATE | Supplemental statement of operations information related to operating leases is as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 Operating lease expense as a component of general and administrative expenses $ 196,000 $ 241,000 Supplemental cash flow information related to operating leases is as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow paid for operating leases $ 45,000 $ 252,000 Lease term and Discount Rate Weighted average remaining lease term (years) 14.4 12.4 Weighted average discount rate 11.0 % 6.5 % |
SCHEDULE OF OPERATING LEASE MINIMUM FUTURE PAYMENTS | Minimum future payments under all operating leases as of March 31, 2024, are as follows: SCHEDULE OF OPERATING LEASE MINIMUM FUTURE PAYMENTS Payments due by period Amount 2024 (remaining 9 months) $ 223,000 2025 355,000 2026 529,000 2027 585,000 2028 611,000 Thereafter 7,555,000 Total Minimum Future Payments 9,858,000 Less: Interest 5,774,000 Total operating lease liabilities $ 4,084,000 Less: current portion of lease liabilities 55,000 Operating lease liabilities, net of current portion $ 4,029,000 |
STOCK COMPENSATION EXPENSE (Tab
STOCK COMPENSATION EXPENSE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF WARRANTS EXPIRATION | As of March 31, 2024, the Company’s warrants by expiration date were as follows: SCHEDULE OF WARRANTS EXPIRATION Number of Exercise Price Expiration Date 802,113 $ 2.80 September 15, 2026 100,000 $ 5.00 May 23, 2027 902,113 |
COMPUTATION OF (LOSS) EARNING_2
COMPUTATION OF (LOSS) EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF BASIC AND DILUTIVE LOSS PER SHARE | Computation of basic and dilutive loss per share for the three months ended March 31, 2024 and 2023 are as follows: SCHEDULE OF BASIC AND DILUTIVE LOSS PER SHARE For the three months For the three months Net Loss $ 2,367,000 $ 2,985,000 Weighted-average common and dilutive shares outstanding 6,418,061 3,114,397 Basic and diluted net loss per share (0.37 ) $ (0.96 ) |
REVENUE DISAGGREGATION (Tables)
REVENUE DISAGGREGATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUE BY PRODUCT LINE | Revenue by product line is as follows: SCHEDULE OF REVENUE BY PRODUCT LINE Product Line March 31, 2024 March,31, 2023 Three Months Ended Product Line March 31, 2024 March,31, 2023 Classic Karaoke Machines $ 942,000 $ 1,571,000 Licensed Products 90,000 - SMC Kids Toys 65,000 133,000 Microphones and Accessories 1,225,000 1,986,000 Streaming Karaoke Machines 104,000 (307,000 ) Total Net Sales $ 2,426,000 $ 3,383,000 |
RECENT DEVELOPMENTS (Details Na
RECENT DEVELOPMENTS (Details Narrative) | 3 Months Ended | ||||
Nov. 20, 2023 USD ($) $ / shares shares | Aug. 23, 2023 USD ($) ft² | Feb. 15, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Lease Agreement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Lease space | ft² | 10,000 | ||||
Lease term | 15 years | ||||
Initial base rent | $ 30,000 | ||||
Private Placement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of stock sold, value | $ 2,000,000 | ||||
Commmon stock share per share | $ / shares | $ 0.91 | ||||
Number of shares sold | shares | 2,198,000 | ||||
Proceeds from sale of equity | $ 1,900,000 | ||||
Transaction fees | $ 100,000 | ||||
ATM Offering [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of stock sold, value | $ 1,800,000 | ||||
Proceeds from sale of equity | $ 0 | $ 36,000 |
LIQUIDITY, GOING CONCERN AND _2
LIQUIDITY, GOING CONCERN AND MANAGEMENT PLANS (Details Narrative) | Mar. 31, 2024 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and cash equivalents | $ 4,125,000 |
FINANCING (Details Narrative)
FINANCING (Details Narrative) - USD ($) | 3 Months Ended | |||||
Mar. 28, 2024 | Oct. 14, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Aug. 30, 2023 | Aug. 29, 2023 | |
Line of Credit Facility [Line Items] | ||||||
Interest expense | $ 25,000 | |||||
Amortization of deferred financing costs | 0 | $ 21,000 | ||||
Interest expense | $ 0 | $ 36,000 | ||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility maximum amount | $ 2,000,000 | $ 15,000,000 | ||||
The Prime Rate | 2.50% | |||||
Credit agreement term | 2 years | |||||
Revolving credit facility terminated date | Nov. 28, 2026 | Nov. 17, 2023 | ||||
Percentage of exit fee | 2% | |||||
Costs associated with line of credit | $ 254,000 | |||||
Base rates of loan description | (a) the Prime Rate plus 0.50% or (b) the Secured Overnight Financing Rate (“SOFR”) 30-day term rate plus 3%, subject to a minimum of 0.050% in either case. | |||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
The Prime Rate | 10% | |||||
Revolving Loan Amendment [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility maximum amount | $ 2,000,000 | $ 5,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | |||
Jul. 01, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Aug. 23, 2023 ft² | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease expense | $ 196,000 | $ 241,000 | ||
Subsequent Event [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease expense | $ 30,000 | |||
Lease Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lease space | ft² | 10,000 | |||
Lease term | 15 years |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Operating lease - right-of-use assets | $ 3,841,000 | $ 3,926,000 |
Current portion of operating leases | 55,000 | 84,000 |
Operating lease liabilities, net of current portion | $ 4,029,000 | $ 3,925,000 |
SCHEDULE OF LEASE TERM AND DISC
SCHEDULE OF LEASE TERM AND DISCOUNT RATE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Leases | ||
Operating lease expense as a component of general and administrative expenses | $ 196,000 | $ 241,000 |
Operating cash flow paid for operating leases | $ 45,000 | $ 252,000 |
Weighted average remaining lease term (months) | 14 years 4 months 24 days | 12 years 4 months 24 days |
Weighted average discount rate | 11% | 6.50% |
SCHEDULE OF OPERATING LEASE MIN
SCHEDULE OF OPERATING LEASE MINIMUM FUTURE PAYMENTS (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
2024 (remaining 9 months) | $ 223,000 | |
2025 | 355,000 | |
2026 | 529,000 | |
2027 | 585,000 | |
2028 | 611,000 | |
Thereafter | 7,555,000 | |
Total Minimum Future Payments | 9,858,000 | |
Less: Interest | 5,774,000 | |
Total operating lease liabilities | 4,084,000 | |
Less: current portion of lease liabilities | 55,000 | $ 84,000 |
Operating lease liabilities, net of current portion | $ 4,029,000 | $ 3,925,000 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) - Operating Lease Agreement [Member] | Feb. 22, 2024 | Aug. 23, 2023 USD ($) ft² | Oct. 01, 2017 USD ($) ft² |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease space | ft² | 10,000 | 6,500 | |
Lease expiration, date | Aug. 22, 2038 | Mar. 31, 2024 | |
Base rent | $ 30,000 | $ 9,950 | |
Lease extension, description | the Company executed a lease extension for 14 months effective April 1, 2024, and expires on May 31, 2025. The base rent on the extension is approximately $10,553 per month subject to a 3% annual adjustment. | ||
Reimbursement for tenant improvements | $ 700,000 |
SCHEDULE OF WARRANTS EXPIRATION
SCHEDULE OF WARRANTS EXPIRATION (Details) | Mar. 31, 2024 $ / shares shares |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of common warrants | 902,113 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of common warrants | 802,113 |
Warrant Exercise Price | $ / shares | $ 2.80 |
Expiration Date | Sep. 15, 2026 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of common warrants | 100,000 |
Warrant Exercise Price | $ / shares | $ 5 |
Expiration Date | May 23, 2027 |
STOCK COMPENSATION EXPENSE (Det
STOCK COMPENSATION EXPENSE (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognised expense | $ 98,000 | ||
Weighted average term | 15 months | ||
Vested options intrinsic value | $ 0 | ||
Warrants outstanding | 902,113 | 902,113 | |
2022 Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share base compensation issued shares | 0 | 0 | |
Share base compensation forfeited shares | 1,250 | ||
Number of shares available to issued | 166,719 |
SCHEDULE OF BASIC AND DILUTIVE
SCHEDULE OF BASIC AND DILUTIVE LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net Loss | $ 2,367,000 | $ 2,985,000 |
Weighted-average common and dilutive shares outstanding- Basic | 6,418,061 | 3,114,397 |
Weighted-average common and dilutive shares outstanding - Diluted | 6,418,061 | 3,114,397 |
Basic net loss per share | $ (0.37) | $ (0.96) |
Diluted net loss per share | $ (0.37) | $ (0.96) |
COMPUTATION OF (LOSS) EARNING_3
COMPUTATION OF (LOSS) EARNINGS PER SHARE (Details Narrative) - Share-Based Payment Arrangement, Option [Member] - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 90,844 | 53,675 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities | 902,113 | 902,113 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax | $ 52,000 | $ 1,502,000 |
SCHEDULE OF REVENUE BY PRODUCT
SCHEDULE OF REVENUE BY PRODUCT LINE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from External Customer [Line Items] | ||
Total Net Sales | $ 2,426,000 | $ 3,383,000 |
Classic Karaoke Machines [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Net Sales | 942,000 | 1,571,000 |
Licensed Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Net Sales | 90,000 | |
SMC Kids Toys [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Net Sales | 65,000 | 133,000 |
Microphones and Accessories [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Net Sales | 1,225,000 | 1,986,000 |
Streaming Karaoke Machines [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Net Sales | $ 104,000 | $ (307,000) |
REVENUE DISAGGREGATION (Details
REVENUE DISAGGREGATION (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 2,426,000 | $ 3,383,000 | |
Co-op promotion incentives | 109,000 | 172,000 | |
Reserve for sales returns | 2,419,000 | $ 3,390,000 | |
Estimated costs of returns | 1,262,000 | $ 1,919,000 | |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 2,426,000 | $ 3,383,000 |
CONCENTRATIONS OF CREDIT RISK_2
CONCENTRATIONS OF CREDIT RISK AND REVENUE (Details Narrative) | 3 Months Ended | ||
Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of sales risk, percentage | 69% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of sales risk, percentage | 82% | ||
Sales Revenue [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of sales risk, percentage | 84% | 89% | |
Sales Revenue [Member] | Customers One [Member] | Customers concentration risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of sales risk, percentage | 60% | ||
Sales Revenue [Member] | Customers Two [Member] | Customers concentration risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of sales risk, percentage | 14% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 2,426,000 | $ 3,383,000 | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 240,000 | $ 218,000 | |
Stingray [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 133,000 | $ 269,000 |