Segment Information

12 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments - Direct and Retail. There were no changes in our operating segments during the year ended March 31, 2023.

We evaluate performance using several factors, of which the primary financial measures are net sales and reportable segment contribution. Contribution is the measure of profit or loss, defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories, goodwill and other intangible assets. Unallocated assets primarily include cash and cash equivalents, available-for-sale securities, derivative securities, shared information technology infrastructure, distribution centers, corporate headquarters, prepaids and other current assets, deferred income tax assets and

other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period.

Following is summary information by reportable segment (in thousands):

	Year Ended March 31,
	2023		2022
Net Sales:
Direct	$	139,289	$	221,726
Retail	144,113		364,069
Unallocated royalty	3,371		3,739
Consolidated net sales	$	286,773	$	589,534
Contribution:
Direct	$	(29,626)	$	(15,711)
Retail	(5,720)		44,831
Unallocated royalty	3,371		3,739
Consolidated contribution	$	(31,975)	$	32,859
Reconciliation of consolidated contribution to (loss) income from continuing operations:
Consolidated contribution	$	(31,975)	$	32,859
Amounts not directly related to segments:
Operating expenses	(61,386)		(58,175)
Other expense, net	(4,768)		(2,914)
Income tax (benefit) expense	9,359		(6,026)
(Loss) income from continuing operations	$	(107,488)	$	(22,204)
Depreciation and amortization expense:
Direct	$	4,691	$	2,513
Retail	3,994		4,381
Unallocated corporate	2,418		1,721
Total depreciation and amortization expense	$	11,103	$	8,615
	As of March 31,
Assets:	2023		2022
Direct	$	50,493	$	93,554
Retail	58,214		144,683
Unallocated corporate	54,825		75,808
Total assets	$	163,532	$	314,045

There are no material long-lived assets held outside of the U.S.

During the periods presented, the following customers accounted for 10% or more of total net sales as follows:

	Year Ended March 31,
	2023	2022
Amazon.com	19.3%	16.8%
Best Buy	*	13.6%

*Less than 10% of total net sales.